The Business
The AFI Group is a leading specialist equipment hire business that provides mobile elevating work platforms as well as complementary specialist skills and compliance training and resale operations. The Group comprises of a comprehensive network of branches both in the UK and Middle East (Bahrain, UAE, Qatar and Saudi Arabia). Customers in the UK are predominantly in the repair and maintenance sector with Middle East operations construction and infrastructure focused.
Investment thesis
The initial transaction was a simultaneous merger of three businesses, AFI-Uplift and Hi-Reach in the UK (3,700 and 1,500 machines respectively) and ARG (400 machines) in the Middle East. The transaction enabled AFI to cement its position as a leading operator in the powered access rental market and create an enlarged group that was well placed for further growth. This common ownership also created fleet utilisation opportunities with the movement of surplus UK assets across to the higher growth Middle East market. Further acquisitions were a core part of the investment thesis, increasing the number of machines in the group’s rental fleet as well as further developing the group’s geographic and end market focus, product and service offering and driving better fleet utilisation. The growth plans also involved expansion in the Middle East; specifically the roll out of depots in Saudi Arabia, Qatar and Bahrain. A final key aspect of the investment plan was to invest in AFI’s own in-house transport fleet to control the delivery process ensuring quick delivery and collection of the rental fleet.
Exit
AFI grew strongly during Rutland’s investment period, with numerous bolt-on acquisitions, new depots in both the UK and Middle East, a broadening of its service offering and more than doubling its fleet of powered access machines. This resulted in AFI’s revenue increasing from c.£50m at acquisition to over £100m at its exit to Pricoa Private Capital in a £160m transaction.
