3i Infrastructure (3IN) has agreed to invest c.£191m to acquire a 92% stake in SRL Traffic Systems, the traffic management equipment rental company in the UK. Management has re-invested to acquire the remaining 8% stake. 3i Infrastructure has provided a further £83m of debt financing to SRL with the intention of replacing this with third party debt in due course.
SRL is experiencing strong growth in customer demand driven by an increasing number of roadworks projects, resulting from greater spending on highway maintenance, utilities works and major infrastructure projects. Hire of traffic management equipment is increasingly favoured over other methods of traffic control because it contributes to improved safety whilst roadworks take place, protecting both road workers and the general public whilst effectively managing traffic congestion.
Richard Laing, chair of 3i Infrastructure, said: “SRL is an attractive core-plus infrastructure business and is well-suited to 3i Infrastructure’s strategy of investing in asset-intensive companies. The business has a strong position through its extensive depot network and market-leading reputation.”
3IN : 3i Infrastructure holds up traffic