Mercia Fund Managers successfully invests £8m into South Tyneside firm

Mercia Fund Managers has invested almost £8m into a local traffic management business in its largest single transaction to date.

The investment in Total Resources UK Limited includes growth, debt and venture funding and will allow the business to expand its existing depot network across the UK, creating up to 100 jobs.

Total Resources, based in Boldon in South Tyneside with depots in Gateshead, Haydock, Leeds, Kidderminster, Mansfield and Essex, provides services ranging from the design and installation of temporary traffic management schemes to portable traffic light hire.

Les Thompson, CEO of Total Resources, said: “We have exciting growth plans for the business and are looking forward to working with Mercia to put them into place.

“The investment will enable Total Resources to become a major force in the highways sector with depots nationwide.”

The investment - which includes funding from Mercia’s EV Growth II and EV SME Loans funds - will provide an exit for one of the founders, John Smart, giving control of the business to the existing management team led by CEO Les Thompson.

The deal also includes investment from the North East Venture Fund (NEVF), supported by the European Regional Development Fund and managed by Mercia, to support the growth of the business.

Paula McGrath and Andrew O’Mahony of Brabners advised newco.

Paula, principal of Brabners Corporate Finance, who led the negotiations with investors, added: “Brabners’ integrated corporate, finance and legal team worked alongside Mercia and Total Resources to deliver a successful transaction.

“Mercia was chosen as the funding partner because the team demonstrated a real understanding of the dynamics of the market and because of their commitment to providing management with support going forward.

“We look forward to working with Total Resources and Mercia to develop the business over the coming years.”

Craig Scott of Hill Dickinson provided legal advice to Mercia. Financial due diligence was carried out by Sentio Partners.

Freeman Fisher LLP also acted for the sellers and management of Total Resources UK Ltd.

Daniel Rodgerson, corporate managing associate, concluded with his thoughts: “Mercia are backing some of the most experienced and well-respected individuals in the North when it comes to traffic management and this deal will give Total the resources to expand an already successful business, allowing them to seize new opportunities in the market.”

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