3i Infrastructure is to acquire a 92% stake in SRL Traffic Systems, which rents out traffic-management equipment in the UK, for 拢191m (鈧�223m).
Management of SRL has re-invested to acquire the remaining 8% stake and 3i Infrastructure has provided a further 拢83m of debt with the intention of replacing this with third-party financing.
SRL is headquartered in Cheshire and owns almost 13,000 items of traffic management equipment, which it rents to local authorities, utilities, contractors and traffic-management companies from a nationwide network of depots.
SRL鈥檚 product range includes temporary traffic lights, adaptive detection systems, pedestrian and cyclist systems, variable messaging systems, barriers and CCTV.
It can also provide planning and design of complex traffic management systems, installation, maintenance and integration with existing systems, and direct sales of equipment assembled by SRL.
3i Infrastructure said SRL was 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.
Richard Laing, chair of 3i Infrastructure, said: 鈥淪RL is an attractive core-plus infrastructure business and is well-suited to 3i Infrastructure鈥檚 strategy of investing in asset-intensive companies.
鈥淭he business has a strong position through its extensive depot network and market-leading reputation.鈥�
Phil White, managing partner and head of infrastructure at 3i Investments, the investment manager of the company, said: 鈥淪RL has defensive characteristics in a sector with attractive underlying market trends.
鈥淲e are excited to be backing a best-in-class management team, and we see opportunities to use our longstanding experience of investing in UK infrastructure to support SRL鈥檚 continued growth.鈥�
