TDC successfully exits NRG Riverside following Palatine sale

27/08/2024

NRG Riverside (NRG), has been sold to Astatine Investment Partners, as TDC and Palatine exit the business following a period of significant growth. Since 2020, NRG’s revenue has grown more than 50%, with employee headcount increasing to more than 220 across 10 sites.

As an early investor, Manchester-based TDC invested in the West Lancashire-based fleet hire business in 2017, before any other sponsor involvement, allowing the owners of NRG to release some capital from the business. Palatine then invested in NRG in 2020.

A local company with a national presence, NRG are experts in specialist fleet solutions for clients spanning both the public and private sector. It is the largest municipal and specialist fleet hire and management company in the UK, offering short and long-term vehicle rental, contract hire and HGV and LCV fleet repair and maintenance services. The business, which was founded almost 30 years ago, operates across the UK. It hires out refuse collection vehicles, skips and hook loaders, traffic management vehicles and more.

Following Palatine’s majority stake acquisition, it supported then-CEO, Sid Siddique, and CFO, Martin Ashcroft, to separate NRG from its former sister company, Direct Tyre Management (DTM). Palatine then appointed new management teams, allowing both businesses to operate as separate entities. Despite its exit from NRG, Palatine still holds investments in DTM.

Despite a period of significant change and growth, TDC demonstrated its ability to work alongside numerous stakeholders on a complex debt structure, having first acted as a reliable and trusted funding partner for NRG, as well as providing value to Palatine through its ability to support and leverage returns from the business.

With the backing from TDC over the course of seven years, NRG has grown exponentially. It has procured hundreds of refuse vehicles from leading manufactures, which has enabled the business to expand. It has also acquired clients nationwide, including local authorities, to whom it has provided essential services to.

TDC also supported NRG in improving its ESG efforts, which is paramount in the waste collection sector. With TDC’s support, NRG has provided electric vehicles to a number of local authorities, ensuring these public bodies have efficient vehicles that are compliant with regulations and environmental standards.

NRG is now based in Skelmersdale, whilst DTM operates out of its Blackpool office, demonstrating TDC’s commitment to supporting underinvested areas, ultimately stimulating smaller regional economies.

Sid Siddique, Founder and former-CEO of NRG Riverside said: “With TDC’s backing, NRG has grown considerably over the last few years. From improving the company’s ESG efforts, to securing even more investment from Palatine and now Astatine Investment Partners, it’s an exciting time for the business.

“From being one of our first investors, the team at TDC has provided invaluable support over the seven years we have worked together, for which the whole team is grateful.”

Tom Wildig, Senior Investment Director at Palatine, said: “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.”

Richard Williams, Partner at TDC, said: “NRG is going through yet another period of growth, having received further external investment since TDC’s initial involvement almost a decade ago.

“We have witnessed first-hand the impact NRG has had around the country, providing electric fleet vehicles to local authorities, and ensuring regulation compliancy in doing so.

“With TDC and Palatine now exiting the firm, and Astatine Investment Partners coming on board, we look forward to seeing what NRG achieves in the future, as it develops as an industry leader and continues improving its sustainability efforts.”