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FMG secures support from Spirit
4 March 2008
Spirit Capital (“Spirit” formerly AAMPE*) is pleased to announce a £7m investment in FMG Support Limited (“FMG Support”) the UK’s largest independent fleet performance improvement company.
Based in Huddersfield and employing more than 350 people, FMG Support provides a range of outsourced services to help its blue chip customers to manage the performance of their vehicle fleets, generating efficiencies and improving profitability. These services include incident management, roadside repair and recovery management and vehicle rental management.
The business has grown rapidly in recent years, in particular through securing a position as the preferred outsourced provider of incident management services to a number of the UK’s major vehicle leasing intermediaries including LeasePlan, Masterlease and GE Commercial Finance Fleet Services.
Revenues in 2007 were over £60m and further significant growth is predicted. The ever-increasing burden of regulatory compliance continues to drive a trend towards the outsourcing of fleet management to specialist providers. At the same time, FMG Support is continuing to improve and develop the suite of services it offers to its customers, as well as extending its offering into complementary markets.
Spirit has invested £7m for a significant minority stake in the business. In addition Lloyds TSB Corporate Markets acquisition finance team is providing enhanced banking facilities to assist CEO, Nick Brown, and the incumbent management team, seven of whom will become new equity holders, in the delivery of their ambitious development plans.
Colin Stirling, Craig Hopwood and Denise Emmanuel worked on the deal for Spirit and Stirling will join the FMG Support Board.
The investment in FMG Support represents Spirit’s fourth transaction in the last 12 months following investments in regeneration specialist EDSR, oil and environmental services provider Adler and Allan and the successful sale of Plaxton.
Colin Stirling, Partner, Spirit Capital, commented: “FMG Support is a high quality business which we have been shadowing for some time and we are really pleased to have the opportunity to support the team in the next phase of development. We believe the niche which the business serves has positive legislative and regulatory dynamics and are confident that FMG Support delivers service levels which offer a real competitive advantage.”
Nick Brown, CEO of FMG Support, commented: “We are delighted to have secured Spirit Capital as a partner to work with us to continue the strategic development of the business. The new investment has provided FMG Support with the financial base required to deliver the full potential of the strong competitive position which has been established over recent years and will enable us to continue to open up new end markets for our services.”
Notes
*Prior to September 2008 Spirit Capital was previously known as Aberdeen Asset Managers Private Equity/ AAMPE