Hydrex Group, the specialist supplier of mobile operated equipment and associated support services for the UK rail and materials handling sector, has been sold by Bridgepoint to Quilvest and Shoaibi Group in a transaction totalling £106 million.
Bridgepoint first invested £15 million in the business in March 2002, supporting a £36 million MBO. It subsequently provided additional funding for two of the four bolt-on acquisitions Hydrex has made in the past four years. These allowed it to secure strong regional positions in the UK rail and specialist materials handling markets.
Founded in 1985, the company's customer base comprises specialist infrastructure maintenance and track renewal contractors as well as aggregates and waste handling.
According to Alan Payne, director at Bridgepoint in London, Hydrex's success has resided in its ability to secure customers who are outsourcing their specialist equipment needs under long term contracts.
"Since we first invested four years ago, Hydrex has been successful in effecting a buy and build strategy that has allowed it to expand services and geographical coverage and at the same time reposition the business to take advantage of the outsourcing trend in its sector." he said.
Debt for the transaction was provided by Barclays. Advisers included: Close Brothers (corporate finance), Ernst & Young (accounting due diligence), Deloitte (market due diligence); for Bridgepoint - Eversheds (legal); for Quilvest & Shoaibi Group - SJ Berwin (legal); for Barclays - DLA (legal)
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