AIRDRIE-based commercial vehicle hire company TOM Vehicle Rental has unveiled plans for further expansion in the English market after completing a management buyout backed by Equistone Partners Europe.
TOM Vehicle Rental currently has five depots across England after opening in Birmingham last month, with chief executive Robert Stewart saying there are likely to be “one or two” further openings in the coming year.
In the last financial year the firm opened in Castleford and London after making its first foray into England by launching in Manchester in 2013.
“With the Equistone opportunity other things like acquisitions will become realisable for us – we’re in a fragmented market and with added firepower consolidation becomes more possible,” Mr Stewart said.
As part of the Equistone deal, TOM Vehicle Rental is now led by a management team made up of Mr Stewart, chairman David Smith, chief financial officer Steve Purkis and sales and marketing director Jim Rafferty junior, the son of founder Jim Rafferty senior.
Mr Rafferty senior previously owned 50 per cent of the business with private equity houses Coralinn and GMG Asset Management owning the other 50 per cent between them.
Coralinn and GMG have sold out completely while Mr Rafferty sold his position to take a small holding in the new structure.
“Jim is active from a mentoring point of view and he had an appetite to remain as a less material shareholder,” Mr Stewart said.
On the Equistone side, partners Tim Swales and Paul Harper have joined TOM Vehicle Rental’s board, something that Mr Stewart said was a key factor of partnering with the firm on the buyout.
“I was looking for an institutional shareholder who could add value and was strategically aligned to the management team,” he said.
Mr Harper said that Equistone has “exciting plans for the continued development of the business”, adding that it is “extremely well positioned for further organic and strategic growth”.
“We look forward to working closely with Robert and his team in developing TOM into the number one player in the UK for multi-asset vehicle rental,” Mr Harper added.
Mr Stewart noted that the last financial year has been one of growth for TOM Vehicle Rental, which saw its turnover rise by 49 per cent to £213 million in the year to the end of March.
Earnings before interest, tax, depreciation and amortisation were also up by the same percentage, rising from £31.6m to £47m, while the firm invested £106m in its fleet of vehicles and £1.5m in its technology systems.
The business, which was founded in 1991, now operates from six locations in Scotland and five in England, renting commercial vehicles to around 900 public and private sector customers.
Mr Stewart said that he joined the business in 2010 and since then has seen turnover increase from £20m to its current position of over £200m.
Staff numbers, meanwhile, have risen from 180 to almost 600 and the number of vehicles in the company’s fleet has risen from 2,000 to over 12,000.
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