Sentio has advised the management team on the MBO of the fleet and passenger services division of Kier Group for £17.9m, backed by Endless LLP.
The Lincoln-based business, which has more than 500 employees, will trade as Essential Fleet Services (“Essential”). It has agreed a five-year deal with Kier to provide fleet services to its local authority highways and utilities businesses, while it will also take on finance lease debt of approximately £32m. Essential has recently reported revenues of £34m and profits before interest and tax of £5.6m.
Kier acquired the business as part of its £221m acquisition of May Gurney in 2013, and the business had previously traded as TransLinc. Its operations are mainly in Yorkshire, Lincolnshire the North West and the South East.
Essential’s managing director Ray O’Toole, who led the MBO alongside operations director David Liston, said, “This is a really exciting time for our company and for our people and we are delighted to have Endless as our new partner. Endless was immediately aligned with the growth ambitions of the management team and the future for Essential feels very bright.”