TXM Plant, the UK’s largest supplier of road rail vehicles, has completed a management buyout to accelerate its growth and invest in its fleet.
TXM Plant, which is headquartered in Milton Keynes, provides road rail vehicles and associated attachments to Network Rail and its major contractors involved in maintenance, track renewal and infrastructure projects.
The business operates from nine strategically located regional depots and is able to support customers on a national basis.
TXM Plant has more than doubled its turnover in the last three years to £45m, securing several major contracts. During this period it has secured Principal Contractor status and recently secured a four year framework contract to undertake track renewal on the Tyne & Wear Metro, which is operated by Nexus.
The management buyout was backed by leading mid-market private equity firm LDC for an undisclosed sum. The investment comes amidst the UK’s biggest ever period of investment in rail infrastructure, which includes major electrification schemes such as Great Western, Thameslink, and Crossrail, which is Europe’s biggest construction project. In addition, construction of the £50bn HS2 project is expected to start next year and Crossrail 2 recently received Government support.
Following the transaction, TXM Plant intends to accelerate its growth by investing heavily in its fleet and expanding its range of value-added services. The buyout was led by the company’s Managing Director Gareth Richardson, Business Development Director Rob Killen and Finance Director Patrick Matthews.
As part of the transaction, Keith Ludeman has joined the business as Non-Executive Chairman. Keith brings a wealth of experience in the rail and wider transport and infrastructure sectors. He was a main board director of Network Rail until July 2014 and serves as a non-executive director of Interserve PLC as well as chairing Bristol Water.
Gareth Richardson, Managing Director of TXM Plant, said: “After a period of solid growth, now was the right time to accelerate the next stage of the business’ growth journey.
“LDC has an impressive track record of supporting management teams and the deal provides us with the platform to cement our market-leading position. Developing first-class rail infrastructure is a major national priority, and we are well-placed to be at the centre of many of these exciting projects as lead partners to our clients.”