Australia's PEP buys traffic management business

The size of the deal was not disclosed, but The Australian reported that it valued Altus at approximately AUD 200m (USD 142m).

The 20-year-old company calls on 2,000 staff and thousands and specialised vehicles and other equipment to run patrols, deploy signage, and redirect traffic when road and rail maintenance is underway or when engineers are working on utilities and infrastructure projects. It also fulfils the same function for community and charity events, film shoots, and sporting competitions.

Altus delivers 2.5m hours of traffic control each year, serving some 1,300 customers across 20 locations throughout Australia. It recently expanded its footprint through the acquisition of industry peer Traffic Diversions Group (TDG), which primarily operates in the state of Victoria.

In addition to its core business, the company runs provisioning services – compiling traffic plans and obtaining permits for more than 10,000 projects a year – provides event management services, conducts traffic modelling for construction projects, and offers relevant training and equipment hire services.

David Lundberg, founder and chairman of Altus, said in a statement that the new investment would help accelerate the company’s growth in Australia, New Zealand and other markets, and facilitate the application of digitalisation to an industry that remains susceptible to technological disruption.

As part of the transaction process, Altus has secured the exclusive Australian rights to technology from UK-headquartered Highway Resource Solutions. The company delivers digital services in temporary work zones for infrastructure, construction, and maintenance projects, helping improve safety and efficiency. PEP plans on assessing other acquisition opportunities that drive technological innovation.

Matt Robinson, a managing director at the private equity firm, added: “Altus is led by an excellent management team with a long history of providing safe worksites across the country for its people, clients, and the general public. With the acquisition of TDG the combined Altus Group has an enviable market leading position in this fragmented market.”

PEP has two core businesses: a flagship private equity buyout strategy and a secure assets strategy, which invests in companies that generate annuity income but also offer opportunities for traditional PE-style operational improvement. The firm’s sixth private equity fund closed on AUD 2.5bn in 2020 and a second secure assets vehicle launched earlier this year with a target of AUD 1bn.

Over the last 12 months, PEP has been more active in terms of exits than investments. Four realisations – two for PE and two for secure assets – came in December 2021 alone. Utility services player Winconnect, medical devices distributor LifeHealthcare and hospital platform Evolution Healthcare were exited in full, while Brookfield Asset Management took a stake in smart meters business Intellihub.

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• Topics
• Australasia
• Buyouts
• Support services
• Australia
• Pacific Equity Partners
• Logistics