£3m investment for Salford-based traffic management services firm UDP

Traffic management services company Utilities Design & Planning (UDP) Limited has received a £3m boost from private equity investment manager Foresight Group.

The seven-figure investment from the Foresight Regional Investment Fund (FRIF) will allow Manchester-based UDP to continue expanding into new areas and capitalise on the significant infrastructure investment across the North West.

Established in 1996 in Salford, UDP provides civil engineering and traffic management services, offering inspections, planning works and management for projects such as utilities, sewer connections, rail and highways.

The firm’s founders and current directors, David Hilton and Noel Gallagher, will remain with the company as part of the transaction, which will see former Enterprise Plc MD Richard Fraser join in the role of non-executive chairman.

Further, UDP’s management team will be supported with the appointment of David Atherton, the former financial director of infrastructure support services business Amey Plc.

UDP’s managing director, Dave Hilton, said: “The Manchester market is fast providing more opportunities for expansion with focus on a growing economy and infrastructure.

“Foresight’s support will allow us to engage with this growth in activity through driving sales, and by expanding services into adjacent geographies to meet emerging demands.”

Claire Alvarez, senior investment manager at Foresight, commented: “UDP has demonstrated strong growth in recent years, and is a great example of the type of SME that we look for in the Foresight Regional Investment Fund.

“We look forward to working with the senior management team to expand the business nationally, and to also build on the possibilities that local engineering infrastructure will provide after the commencement of major rail and construction projects in the Greater Manchester area.”

Foresight was advised on the deal by a team from corporate law firm Addleshaw Goddard headed up by Katie Simpson and Andy Green. Financial due diligence was provided by Stephen Green’s team at accountancy firm RSM, while commercial diligence was carried out by Roger Penny of RPL and management due diligence by Mike Hicks from Catalysis.

UDP was advised by Lauren Roberts from the corporate finance team at accountants HURST. Paul Brown and James Thompson, also from HURST, provided tax advice. Mark Heppell of Manchester law firm JMW, meanwhile, provided legal advice.

HURST’s Lauren Roberts said: “UDP has built an excellent reputation since it was established 20 years ago and is a leading operator in its areas of activity.

“It now has a tremendous opportunity to grow further, using the contacts and expertise of the incoming members of the management team and investors.”

Funding support for the transaction was provided by a team from Yorkshire Bank Specialist and Acquisition Finance led by Michelle Heptinstall and Neil Mcloughlin.