May Gurney has bought specialist fleet services provider TransLinc for a fee of £34.9 million in a bid to offer a greater all-round tender solution.
The move is designed to strengthen the contractor’s position in highways maintenance and environmental services whereby provision and maintenance of vehicles are increasingly included in ‘bundled’ tenders.
May Gurney chief executive Philip Fellowes-Prynne said: “This acquisition is a good strategic fit and is expected to be earnings enhancing in the first year.
“It brings into the May Gurney Group a portfolio of services and clients which are highly complementary to our existing business, augmenting our strong positions in highways and environmental services as well as further establishing the group as the leading support services business in the UK.”
He added: “We look forward to working with the TransLinc team to deliver continued positive returns to all our stakeholders.”
The company described TransLinc as the UK’s leading provider of specialist fleet management and passenger services to the public sector (which counts for more than 90 per cent of its clients) where it manages more than 2,800 specialist vehicles from 20 locations for over 40 customers.
Under the deal, May Gurney will assume around £30.7m of customer contract-backed fleet financing obligations and it expects the transaction to be earnings and margin enhancing in the first year of acquisition.
For the year to 28 February 2011, TransLinc achieved earnings before interest, tax, depreciation and amortisation of £17.6m on revenues of £34.7m with total assets of approximately £53.6m. The company employs more than 400 employees and they will work under a TransLinc/May Gurney specialist fleet services business going forward.