07.08.2014

Private equity MBO at Access Hire Nationwide

UK based van rental specialist Access Hire Nationwide has been acquired in an Elysian Capital backed Management Buy Out.

The deal also includes sister company Welfare Hire Nationwide which rents out temporary eating and washroom cabins from its headquarters in South Wales.

The two businesses were founded and owned by serial entrepreneur David Wraith and other investors.

The MBO is headed by the chief executive of both companies John Wood, who said: "We believe that, with the help of Elysian Capital, we can expand the range, quantity and quality of products we offer and improve the services we provide to our customers. Our vans and welfare units are critical in providing UK infrastructure workers with safe, comfortable and efficient working facilities."

Ken Terry, chief executive of Elysian Capital added: "We are delighted to be working with John and his team on this exciting opportunity. The management has done an excellent job in building the Access Hire Nationwide business into the UK market leader in the vehicle mounted access platform sector and establishing Welfare Hire Nationwide as a fast growing provider of safe and high quality welfare units for workers' off-site requirements. We are keen to work with the management and invest to continue to grow the business in to complimentary areas to further service our customers."

Vertikal Comment

This deal takes Elysian Capital into a completely new market sector, and unlike many private equity deals it comes in at a very good point in the economic cycle of the market.

For David Wraith it is possibly - but not certain - the culmination of a long career in the powered access and cabin rental markets. He founded Nationwide Access with Gary Smith in the 1980s - selling it in 1992 when it became Lavendon, the world's largest powered access rental specialist.

After moving back into the cabin market, he formed Access Hire Nationwide along with John Wood in 2007, and then acquired the van rental business of Aquarius leasing. Since then they have not only built the business into a market leading operation with a fleet of over 500 units, but also been instrumental in transforming the way in which long term van mounted rentals are structured.

All in all this looks like a good move for all those involved, but time will of course tell.