LDC invests £24m to support MBO at SRL Traffic Systems

Funding | Growth | Manufacturing | Mergers & Acquisitions | South East

Mid-market private equity investor LDC has invested £24m to back the management buyout of SRL Traffic Systems, a national manufacturer and provider of portable and temporary traffic equipment, as it embarks on the next phase of its growth strategy.

Headquartered in Cheshire, SRL boasts a nationwide network of 26 depots. It has a wide range of temporary pedestrian and traffic light systems. Its equipment is used on many of the UK’s large infrastructure projects, providing customers with 24/7 support and maintenance services.

The buyout was led by SRL’s existing CEO Richard Tredwin and his management team, which includes Managing Director – Hire Division Malcolm Johnstone, Commercial Director Alison Spooner, Manufacturing Director Peter Almond and Urban 64 Managing Director – John Cleary.

Under their leadership, SRL has grown rapidly and today it employs more than 140 people, operates a fleet of more than 7,500 units and in its latest financial year recorded a turnover of £18.4m.

With LDC’s support, Richard and his team will now kick-start a multi-million-pound capital investment programme to accelerate organic growth. This will include expanding SRL’s current hire fleet, developing its manufacturing capability to increase production and investing in new product development to further broaden its service offering. The management team will also explore targeted acquisitions to support further diversification of SRL’s capabilities.

Richard Tredwin, CEO of SRL Traffic Systems, said: “Our number one priority is to ensure our customers have access to the best technology in the market without compromising on quality. As demand increases, we need an investment partner that has the desire and commitment to support ambitious management teams, as well as the track record to help us deliver just that.

“With strong credentials in the traffic management sector and a track record for partnering with management teams to drive growth, LDC’s support will enable us to invest for the benefit of our customers and unlock the potential of our business.”

The deal was led by Investment Director John Clarke, Senior Director Ged Gould and Investment Executive Kelsey Bayley at LDC in Manchester. Ged and John will join the board as a Non-Executive Directors, alongside Non-Executive Chairman Sat Dhaiwal.

Clearwater International advised SRL’s management team and provided debt advisory services.

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