Go Plant
Transaction Background
In December 1995 Graphite Capital led the management buy-out of Go Plant, which was formerly part of the Environmental Services Division of AAH plc. In October 1999 we provided further capital to acquire Shropshire Road Sweepers, one of its major competitors. Go Plant was one of the UK’s largest providers of road sweepers and other vehicles to local authorities and construction businesses. From the 20 depots across the UK Go Plant supplied over 1000 vehicles on either a self-drive or with-driver basis.
Deal Attractions
Go Plant was loss-making in 1995 but had a substantial, under-utilised trading asset base. The management buy-out was funded at a substantial discount to net asset value. New managers were keen to improve asset utilisation and capitalise on the rapid growth of local authority out-sourcing. The market was also highly fragmented making consolidation opportunities potentially attractive.
Achievements
- profitability was rapidly restored following the 1995 buy-out
- the company diversified away from its road sweeper base to provide a wider range of municipal vehicle assets
- Go Plant was increasingly viewed as the quality player in the industry and its market share grew
- the company made several acquisitions
- turnover rose by 59 per cent to £27.6 million in the three years to March 2007
- operating profit after finance lease interest also increased sharply
Exit
- Go Plant was sold to Easternrange, a privately backed investment vehicle, in June 2007
- the sale generated a total return to Graphite of 4.2 times its investment
