LONDON: Caledonia Investments plc announced Tuesday it has invested £49.5 million to acquire a 61% majority stake in Conquip Engineering Group Holding Company Limited, a family-owned provider of products and solutions for the infrastructure, utilities, energy and built environment sectors.
The deal positions the FTSE 250 self-managed investment trust to support Conquip’s next phase of growth, which includes expanding its rental fleet, rolling out its specialist shoring proposition nationally and pursuing further product innovation.
Founded in 2003, Conquip has built a reputation for customer-led innovation and safety-critical products that increase productivity on complex projects. The business operates through nine regional locations across the U.K. and employs approximately 250 people. Its customer base is diversified, with significant exposure to infrastructure and utilities, alongside housebuilding and the built environment.
Brothers Daniel and George Critchley, who lead the family-owned company, will continue to manage the business and will reinvest alongside Caledonia.
“Conquip has established a strong reputation for delivering best-in-class products and solutions,” Caledonia said in a statement. “Our investment will enable the business to continue strengthening its position as a partner of choice for customers through excellent service and innovative offerings.”
The investment comes as Conquip broadens its proposition through equipment rental activities and the recent acquisition of ProMech, which added specialist engineering capabilities in more complex shoring applications. Caledonia said combining that expertise with Conquip’s national depot network and established customer relationships creates an opportunity to serve a wider range of customer requirements and expand the combined proposition nationally.
Caledonia said it will partner with management to support continued development, including increasing penetration with existing customers, expanding geographic coverage, investing in the rental fleet, scaling the shoring proposition, developing new products and pursuing selective acquisitions.
Caledonia’s Private Capital portfolio includes AIR-serv Europe, Cobehold, Butcombe Group, Blue Diamond and Direct Tyre Management. The firm typically invests £50 million to £150 million in private companies, either on a majority or minority basis, and aims to generate long-term compounding real returns that outperform inflation by 3% to 6% over the medium to long term, as well as the FTSE All-Share index over 10 years.
Tom Leader, Head of Caledonia Private Capital, commented: “Conquip is a high-quality and differentiated business with a strong management team, market-leading products and clear opportunities for continued growth. Its focus on safety, customer service and innovation has enabled it to create trusted, long-standing relationships across the UK construction industry.
We have developed a strong relationship with management and the wider team and look forward to supporting the growth and development of the Business.”
Daniel Critchley, Chief Executive Officer of Conquip, commented: “We are delighted to be working with Caledonia on the next stage of Conquip’s development. Finding an investor that understands our culture and shares our ambitions was particularly important. Caledonia’s long-term mindset, experience of supporting entrepreneurial businesses and collaborative approach made them a natural choice.”
The transaction was led for Caledonia by Theo Tizard, James Lander, Chris Hodges and Will Sym.
Legal advice to Caledonia was provided by Stephenson Harwood’s Malcolm MacDougall, Lucy Thorpe and Rajiv Kakkad. CIL’s Jon Whiteman and Tim Perera provided commercial due diligence; Deloitte’s Tim Haden, Matthew Crocker and Sam Ward provided tax advice; and Stifel’s Phil McCreanor and Teodora Sabeva provided corporate finance advice.
Clearwater Corporate Finance’s Zack Goddard, Michael Loudon, Richard Clark, Declan Warwick, Harry Talks and Eva McBride provided corporate finance advice to the vendors, with legal advice from Squires Patton Boggs’ Paul Mann, James McKay, Louise Parker and Vicky Jew. Commercial due diligence was provided by LEK’s Jeremy Wheatland, Tom Diplock and Jonathan Hillcoat, and financial and tax due diligence was provided by KPMG’s Glynn Bellamy and Nadina Crossen.
