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Thursday, July 18, 2024

NRG Riverside Sold to Astatine Investment Partners, Marking a New Era in Fleet Hire

In a significant development for the UK’s fleet hire industry, West Lancashire-based NRG Riverside has been acquired by Astatine Investment Partners. This deal also marks the exit of Manchester equity firm Palatine from the £70 million turnover company. Known as the largest provider of specialist refuse collection vehicles in the UK, NRG Riverside has seen substantial growth under Palatine’s ownership. This acquisition sets the stage for continued growth and innovation in the sector.

Growth and Expansion Under Palatine

Since Palatine’s majority stake acquisition in October 2020, NRG Riverside has experienced impressive growth. The company’s revenue increased by over 50%, with employee numbers rising to over 220 across ten sites nationwide. This period of growth also involved significant strategic changes, including the separation of NRG Riverside from its former sister company, Direct Tyre Management (DTM).

Under Palatine’s guidance, NRG Riverside not only expanded its fleet but also diversified its market reach. The company began to venture into new vertical markets such as infrastructure and highways, further solidifying its position as a leader in the fleet hire industry. This strategic diversification played a crucial role in driving the company’s impressive financial performance, with turnover rising from £62.6 million in 2022 to £70.7 million in 2023. Pre-tax profits also saw a substantial increase, jumping from £5.8 million to £7.7 million in the same period.

Strategic Positioning and Market Leadership

NRG Riverside, headquartered in Skelmersdale, leases and maintains a fleet of over 2,000 vehicles, including waste collection trucks and tankers. The company caters to both public and private sector organisations. With a turnover of £70.7 million in the year ending September 30, 2023, up from £62.6 million in 2022, and pre-tax profits rising from £5.8 million to £7.7 million, NRG Riverside has solidified its market leadership.

The company’s success can be attributed to its commitment to providing high-quality, reliable services to its clients. By focusing on customer satisfaction and operational efficiency, NRG Riverside has built strong relationships with its clients, which include some of the largest public and private sector organisations in the UK. This client-centric approach has been instrumental in driving the company’s growth and establishing it as a market leader.

Palatine’s Investment and Workforce Development

Palatine’s tenure saw significant investments in workforce training, development, and retention. One of the key initiatives was the launch of NRG Riverside’s apprenticeship scheme in 2022, which has played a crucial role in fostering a people-centric culture within the company. This program has not only helped attract new talent but also ensured the development of a skilled and motivated workforce, capable of meeting the evolving needs of the industry.

Tom Wildig, Senior Investment Director at Palatine, expressed satisfaction with the company’s progress under Darren Powell’s leadership, emphasising the development of new market verticals in infrastructure and highways. Wildig highlighted that NRG Riverside’s success was driven by its dedicated employees and a strong leadership team that continually sought to innovate and improve.

The Future with Astatine Investment Partners

With Astatine Investment Partners now at the helm, NRG Riverside is well-positioned to capitalise on emerging market dynamics, particularly the shift towards zero-emission fleets. Darren Powell, CEO of NRG Riverside, highlighted the company’s readiness to support the transition to net zero emissions, bolstered by strong customer relationships and a robust leadership team.

Astatine Investment Partners, known for its focus on infrastructure investments, brings a wealth of experience and resources to NRG Riverside. This new partnership is expected to drive further growth and innovation, particularly in the area of sustainable fleet solutions. With increasing regulatory pressures and growing demand for environmentally friendly solutions, NRG Riverside is well-placed to lead the industry’s transition to greener, more sustainable operations.

Deal Advisors and Financial Diligence

The transaction saw Palatine being advised by Deloitte Corporate Finance, with additional legal and financial diligence support from Gateley and PWC, respectively. This comprehensive advisory team ensured a smooth transition of ownership, paving the way for NRG Riverside’s continued growth and innovation in the fleet hire sector.

Deloitte’s role in advising on the deal highlights the complexity and significance of this transaction. Their expertise, combined with the legal and financial due diligence conducted by Gateley and PWC, provided a solid foundation for the successful acquisition by Astatine Investment Partners. This meticulous approach ensured that all aspects of the deal were thoroughly evaluated and addressed, setting the stage for a seamless transition and continued success for NRG Riverside.

A New Chapter for NRG Riverside

The acquisition of NRG Riverside by Astatine Investment Partners marks a significant milestone in the company’s journey. With a solid foundation laid by Palatine and a clear vision for the future, NRG Riverside is set to continue its trajectory of growth, innovation, and leadership in the UK’s fleet hire industry. As the company embarks on this new chapter, its commitment to sustainability and customer-centric service remains at the forefront of its operations.

NRG Riverside’s future looks promising with the backing of Astatine Investment Partners. The company is well-equipped to navigate the challenges and opportunities that lie ahead, particularly in the areas of zero-emission fleets and sustainable infrastructure. With a strong leadership team, a skilled workforce, and a clear strategic vision, NRG Riverside is poised to lead the fleet hire industry into a new era of innovation and sustainability.



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