BEECH TREE PRIVATE EQUITY ANNOUNCE TWO FOLLOW ON ACQUISITIONS FOR ITS MIDLAND’S BASED INVESTMENT RS CONNECT

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BEECH TREE PRIVATE EQUITY ANNOUNCE TWO FOLLOW ON ACQUISITIONS FOR ITS MIDLAND’S BASED INVESTMENT RS CONNECT

19 April 2016

Beech Tree Private Equity (“BTPE”) today announce RS Connect has acquired two telematics installation businesses, eDrive and Signals.

Both eDrive and Signals have joined the RS Connect group with immediate effect. The management of both businesses will remain and the companies will be run autonomously, but will benefit from a number of services provided centrally by RS Connect.

The acquisitions come at an exciting time for RS Connect and the telematics industry. The demand for a truly professional telematics installation service is rapidly expanding, the extra capacity and scalability that come from bringing these companies together will enhance the quality of service the businesses can deliver for their customers. RS Connect is also investing £1 million in a new integrated technology and booking platform that will significantly raise the bar for the customer experience across the whole industry.

eDrive is a leading telematics installation business headquartered in Waterford, Ireland. The business installs telematics devices for the insurance, fleet and leasing sectors. Signals, based in South Wales, is a specialist installer of telematics devices and related technology, particularly for the blue light emergency services.

Lea Hodson, CEO of RS Connect comments: “We are thrilled to have bought these two businesses into the Group. The demand for telematics installation is rocketing and these acquisitions give us greater scale to accommodate this higher demand. One of our aims through these acquisitions was to increase the resilience of the services we offer; we now have two call centres, one in Ireland and one in the Midlands and a greater employed engineering force across the UK and Ireland. Our customers can be confident in the delivery of a professional service supported by a broader infrastructure”.

Paul Franks, Partner at Beech Tree Private Equity comments: “RS Connect is at the heart of the telematics installation industry. A professional installation is paramount to ensure that data from the boxes installed in vehicles is accurate. With the growth in the demand for telematics devices we recognised the need to build increased resilience in the services we provide and extend our capability. The investment in a new state of the art booking platform together with the acquisition of both eDrive and Signals will add to our overall strength and customer proposition. The management teams of both businesses will remain so our combined customers will benefit from both the continuity of relationship and the high standards and investment within the overall Group”.

The funding for the acquisitions was provided by Beech Tree Private Equity and Lea Hodson.

About Beech Tree Private Equity:

Beech Tree Private Equity is a new private equity firm providing capital and expertise to fast growing businesses across the UK. BTPE invest £10-30 million into high growth companies typically valued at between £10 and 75 million. The business was founded by two experienced private equity investors, Andy Marsh and Paul Franks, who previously ran the regional private equity business of Gresham Private Equity. Beech Tree Private Equity invests in businesses operating in high growth markets or with disruptive business models which, with additional capital and expertise, can take advantage of the dynamics of an attractive business model and expanding market. More information can be found at www.beechtreepe.com

About RS Connect:

Based in Coleshill, West Midlands, RS Connect is the leading installer of telematics devices in-vehicle on behalf of insurance companies. The business has invested heavily to provide a highly effective and technology-enabled efficient installation service for insurance companies. RS Connect installs over 300,000 telematics devices across the UK through its fleet of over 150 field-based auto engineers. The business also operates in other telematics-enabled markets such as the fleet market to provide a similar cost-effective installation service for blue-chip organisations

Advisers on the transaction:

Beech Tree Private Equityand RS Connect were advised by the following parties:

  • Legal: Higgs & Sons (Richard Griffiths, Jamie Partington)
  • Financial: KPMG (Glynn Bellamy, Mathew Vernon, Richard Dwight, David Close)
  • Tax: KPMG (Steve Heath, Anna Roberts)

Enquiries:

Please direct enquiries to:

Beech Tree Private Equity: Paul Franks (paul.franks@beechtreepe.com or 07802 188775) or Adam Rudd (adam.rudd@beechtreepe.com or 07825 008067)

RS Connect Limited: Lea Hodson (lea.hodson@rsconnect.com or 07814 939489)

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