Investcorp and private equity firm Trilantic to buy US road safety products provider RoadSafe

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

The pair will focus on hastening 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,” said Tarek Al Mahjoub, head Investcorp’s private wealth business in the UAE and Oman.

“Its competitive advantage includes its diverse range of offerings ... 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 transport, 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 the contiguous 48 states.

“We are excited to embark on this next chapter of our business with the support of Investcorp and Trilantic North America,” said RoadSafe chief executive Dave Meirick, who will continue to lead the company after the transaction.

“Their resources, expertise and track record will enable us to continue executing on our growth strategy.”

Alternative asset managers invest in asset classes that are outside public markets. These include private equity, private credit, venture capital, hedge funds, commodities, property and infrastructure.

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

It also has stakes in companies such as ticketing services provider Vivaticket, Nordic provider of e-health solutions Cambio, European telematics solutions provider Abax 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 stepped up its investment activity, is optimistic about the prospects of industrial and multifamily 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.

In February, Investcorp reported a 33 per cent jump in first-half net profit on the back of higher asset-based income.