DC Advisory advised 3i Infrastructure plc on its acquisition of SRL Traffic Systems

Background

• SRL Traffic Systems (SRL) is the market leading traffic management equipment rental company in the UK
• Founded in 1997 and headquartered in Cheshire, UK, SRL offers its customers a full service rental solution - which includes the planning and design of complex traffic management systems, and the installation, maintenance and integration with existing systems, as well as direct sales of equipment assembled by SRL
• SRL has a network of 30 depots strategically placed nationwide, for users of almost 13,000 signals in the equipment as a service (EaaS) fleet

• SRL serves a growing addressable market propelled by an increasing number of roadworks projects - driven by increased spend on highway maintenance, utilities work and major infrastructure projects

Process

• DC Advisory (DC) was engaged by 3i Infrastructure plc (3i Infrastructure) to provide buy-side and debt advice to support its acquisition of SRL
• DC leveraged its knowledge of SRL and its relationship with both SRL and the seller, LDC, to support 3i Infrastructure throughout the process

Outcome

• On 3 December 2021, 3i Infrastructure entered into a definitive agreement to acquire a 92% stake in SRL, with the management team re-investing to acquire the remaining stake
• DC will continue to work with 3i Infrastructure following completion to implement a long-term capital structure for the business
• This transaction demonstrates DC's depth of expertise in the infrastructure services space, and strengthens the firm’s track record advising on core-plus M&A and debt mandates in the sector
• This transaction is expected to close in December 2021