Palatine Makes Successful Riverside Exit

24-04-2024

We have successfully exited specialist fleet solutions provider NRG Riverside with a sale of the Skelmersdale -based business following a period of significant investment in its people and operations and impressive revenue growth.

The business, which leases and maintains specialist vehicles such as waste collection trucks to local authorities and private companies, has been acquired by Astatine Investment Partners, a specialist private equity investor focused on infrastructure investments. Financial terms have not been disclosed.

We originally acquired a majority stake in NRG Group in October 2020. It then separated NRG Riverside from its former sister company Direct Tyre Management (DTM), appointing new management teams allowing both businesses to focus on delivering independent sales strategies, digital roadmaps and operational efficiencies.

DTM remains a part of our portfolio and continues to deliver strong growth and progress its value creation plan.

As a standalone company NRG Riverside has seen revenue grow more than 50% since our investment, whilst employee numbers have increased to more than 220, including over 100 skilled technicians.

With a total existing fleet of over 2,000 vehicles, it is the largest provider of specialist refuse collection vehicles (RCVs) in the UK. It has a network of 10 strategically located workshops providing a UK- wide maintenance and servicing footprint and a comprehensive end-to-end fleet hire service proposition.

Tom Wildig, Senior Investment Director at Palatine said: “We have been delighted with the progress Riverside has made under the leadership of Darren Powell and his team. The business has grown into the leading provider of contract hire and leasing in the waste market as well as developing new vertical markets of infrastructure and highways.

“It has a people-centric culture, and has made significant strides in workforce training, development, and retention. The launch of its own apprenticeship scheme in 2022 was something we were delighted to support.

“NRG is now well positioned to capitalise on compelling market dynamics, including zero emission fleets. ”

Darren Powell, CEO of NRG Riverside said: “Palatine has been an excellent investment partner for us, helping us to grow and become a more sustainable company. We look to the future with confidence and with a clear plan for further growth.  With recent internal promotions to further strengthen our experienced leadership team, we continue to offer the best customer led experience from initial enquiry to vehicle delivery and future renewal.  The growing relationships with our customers and their operations mean we are also well-placed to support the important transition to net zero emissions.”

Drawing on our expertise in sustainable investing, NRG Riverside established an ESG Charter in late 2022, which sets out a sustainable and measurable plan to lessen its environmental impact and support its local communities and workforce.

We were advised by Deloitte Corporate Finance (Andy Westbrook, Jeremy Thomas and Alex Kirkby), Gateley (Rebecca Grisewood, Kate Richards and Adam Noble) with PWC (Sid Hussain, David Tomlinson and Nick Breeze) providing financial diligence.