07.11.2005

VP buys Trax Portable Access

Vp plc, (Vibroplant) Owner of UK forks and Hire station, has acquired Trax Portable Access Limited, for an initial cash consideration of £11.5 million. An additional payment of up to a maximum of £7.93 million is available, dependent upon the financial performance of the company in each of the three years commencing 1st January 2006, 2007 and 2008.

The Trax management team, which owned a significant minority stake in TPA, will remain with the business and will continue to be led by Managing Director, Dale Robinson operating as a separate division within VP.

Funding for this acquisition will come be drawn from VPs current banking facilities.

Trax is a leading supplier of portable roadway systems, bridging, fencing and barriers primarily in the UK, but also in Ireland and mainland Europe. Those in the crane business will be familiar with the product which is used to allow mobile cranes to gain access over soft ground, or as a lifting pad. Trax also covers the events market, construction, telecommunications, rail and power transmission markets.
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A typical heavy end application for Trax temporary roadway

For the year ended 31st December 2004, Trax reported profits before tax of £1.16 million on turnover of £6.32 million. Gross and net assets at 31st December 2004 were £8.22 million and £1.56 million respectively.

Trax has over 80 employees and operates from locations in Worksop and London, and won the Queen's Award for Innovation in 2005.

Jeremy Pilkington, chairman of Vp plc, said "TPA is a well run business led by a management team we believe are capable of developing the business further. TPA enjoys a strong market position and employs the same core skills of asset management that are common to all Vp businesses. We believe TPA represents an ideal sixth business stream to compliment the Group's existing activities."

Vertikal Comment

This looks like an excellent acquisition for VP, the Trax product has wide market diversity and while covering most of the sectors reached by VP’s other divisions, strengthens its presence in areas such as events.

Trax is an extremely well run and dynamic company with a very strong culture. The managers are in their prime and could well play a significant role within the wider group at a later date.

VP might well also look at some of the business strategies employed by Trax and consider adopting them in other parts of the business?

As Terex found when it bought Genie, an aquisition of a company such as this, with the owners remaining in the business, can bring a great deal more to the group than the simple financial performance of the acquired business.