Private equity firm LDC has invested in Amberon, a provider of traffic management services, as part of a £25 million funding package to back the management buyout of the business and fund further expansion.
LDC will take a significant stake in the business alongside the current management team, led by Managing Director Terry Musson and Commercial Director Daniel East, whilst enabling its founder shareholders to exit the business. The funding package includes bank finance from HSBC.
Amberon is based in Paignton, Devon and has grown from a small traffic light rental company to a specialist traffic management services provider with 18 depots, a 350 vehicle fleet and almost 500 people.
The business provides safety solutions to support planned and emergency repairs such as traffic lights, signage and CCTV, with projects ranging from road closures on low-speed, urban and rural sites to complex, high-speed contraflow schemes on dual carriageways and motorways.
In the last financial year Amberon had sales of £26 million. The business works with major infrastructure contractors as well as local authorities and utility companies.
The management team plans to accelerate growth of the business beyond its existing activities in south west England and Wales by opening depots in the Midlands, North West, South East and East, as well as launching new complementary services. It will also explore potential acquisitions.
David Garman, former Chief Executive of logistics firm TDG plc and non-executive director of Speedy Hire, will join the board as Chairman. Guy Rutherford, formerly Financial Director at fuel distributor Watson Fuels, is also joining the board as Financial Director.
Terry Musson, Managing Director of Amberon, said: “We’ve always had an ambition to continue to scale the business and provide greater geographical reach for our clients. Bringing LDC on board gives us the capital and confidence to continue our journey and build on the hard work over the last decade that has made Amberon such a reliable partner in the sector.”
Alistair Pendleton, Director of LDC and Head of South West & Wales, added: “Terry and Dan have driven exceptional growth over the last 10 years thanks to a commitment to quality of service and excellence in health and safety, which has been the trademark of Amberon’s success. This reputation, combined with a newly strengthened board, a well-invested depot network and positive market dynamics, provides the perfect platform for growth.”