Investcorp and PE firm Trilantic to acquire US road safety products provider RoadSafe

Buyout from Orix Capital Partners will target organic growth and acquisitions in a 'fragmented' market

Investcorp, which counts Mubadala Investment Company as its biggest shareholder, has been expanding its portfolio of investments in recent months. Photo: Courtesy Investcorp

Bahrain-based alternative asset manager Investcorp and private equity firm Trilantic Capital Partners are acquiring RoadSafe Traffic Systems, a US-based traffic safety products provider from Orix Capital Partners.

The pair will focus on accelerating RoadSafe’s organic growth by expanding across the US and will also seek acquisitions to expand operations, Investcorp said.

Financial details were not disclosed.

“RoadSafe operates in a market that is highly fragmented and ripe for consolidation,” Tarek Al Mahjoub, head of UAE and Oman for Investcorp’s private wealth business, said. “Its competitive advantage includes its diverse range of offerings … [and], together with Trilantic, we will continue to build on enhancing its value.”

RoadSafe is a provider of traffic control and pavement marking services to roadway construction, state transportation, railroad and utility customers in the US. The Chicago-based company also distributes traffic safety products and personal protective equipment for traffic work zones.

It currently operates from more than 50 locations in the US and has more than 1,600 employees, allowing it to service clients in all 48 continental states.

"We are excited to embark on this next chapter of our business with the support of Investcorp and Trilantic North America,” RoadSafe chief executive Dave Meirick, who will continue to lead the company following the transaction, said. “Their resources, expertise and track record will enable us to continue executing on our growth strategy.”

Alternative asset managers invest in asset classes outside public markets, such as private equity, private credit, venture capital, hedge funds, commodities, real estate and infrastructure.

Investcorp, which counts Mubadala Investment Company among its shareholders, has invested in firms across industrial services sectors in the past, including American Tire Distributors, Berlin Packaging, FleetPride and Wrench Group.

It also has stakes in companies such as ticketing services provider Vivaticket; Cambio, a Nordic provider of eHealth solutions; ABAX, one of Europe's largest telematics solutions providers; and, cybersecurity company Securelink. Last month, it acquired communications agency Investis Digital for an undisclosed amount from ECI Partners and a group of minority investors.

The company, which has stepped up investments during the pandemic, is bullish on the prospects of industrial and multi-family residential properties in the US, driven by shifting consumer preferences amid Covid-19, which has provided the catalyst for an e-commerce boom, it said in March.

Investcorp reported a 33 per cent jump in first-half net profit on the back of higher asset-based income, in February. Net profit attributable to equity holders of the parent for the six-month period ending December 31 climbed to $63m as asset-based income increased more than three-fold to $45m, it said.