A management buyout is set to take place at north west-based traffic equipment firm SRL Traffic Systems.
LDC, the private equity arm of Lloyds Banking Group, has invested £24m to back the management buyout.
The Cheshire-headquartered firm, which manufactures portable and temporary traffic equipment, said it will use LDC’s investment to embark on the next phase of its growth strategy.
The buyout was led by SRL’s CEO Richard Tredwin and his management team.
Mr Tredwin said: “Our number one priority is to ensure our customers have access to the best technology in the market without compromising on quality.
“As demand increases, we need an investment partner that has the desire and commitment to support ambitious management teams, as well as the track record to help us deliver just that.
He continued: “With strong credentials in the traffic management sector and a track record for partnering with management teams to drive growth, LDC’s support will enable us to invest for the benefit of our customers and unlock the potential of our business.”
SRL plans to use LDC’s support to expand its current hire fleet, develop its manufacturing capability and investing in new product development, it said.
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It currently has 26 depots nationwide, a fleet of more than 7,500 units, employs more than 140 people, operates recorded a turnover of £18.4m in its latest financial results.
The firm said it will also explore targeted acquisitions, with the aim to support further diversification of its capabilities.
The deal was led by LDC Manchester’s investment executive Kelsey Bayley, alongside investment director John Clarke and senior director Ged Gould, who will both join the board as a non-executive directors.
Ged Gould, Senior Director at LDC in Manchester, added: “Backing SRL is another signal of our appetite to support the growth ambitions of management teams right across the north west and with a commitment to invest £1.2bn nationally over the next three years we’re confident the north west will continue to drive forward deal activity.”
The deal is the LDC Manchester team’s third investment this year, following its investment in marketing communications groups MSQ Partners and environmental testing, inspection and consultancy business Shield Group International.