The Aberdeen office of the Business Growth Fund (BGF) has signed off an £8.3million investment in a German bus operator.
BGF’s funding is expected to help Alternative Investment Market (AIM)-listed Metropolitan European Transport (MET), which operates nearly 400 buses on contracts in Frankfurt, Mannheim and Cologne, continue its expansion.
Scottish transport experience in BGF’s Aberdeen office and Granite City connections at MET drove the deal.
BGF’s investment team includes Ken Barclay, who used to work for Souter Investments, the investment vehicle of Stagecoach Group co-founder Brian Souter, as well as David Gammie and Mike Sibson.
MET’s UK-based management team has significant transport experience and a track record for growing businesses in the sector.
Chairman and co-founder Iain Lanaghan is based in Aberdeen and was once chief financial officer (CFO) at Granite City-based transport giant FirstGroup.
Other past boardroom roles for Mr Lanaghan include CFO duties at Aberdeen-based oil explorer Faroe Petroleum.
MET finance director (FD) Guy Houston is a former FD at FirstGroup’s UK bus operation, while he has also held senior finance roles at Transport Scotland and Stagecoach UK Bus.
Mr Sibson said: “We’ve backed a high-calibre team, with very credible sector experience.
“David and his team has already grown the business significantly since founding it in 2011.
“They have demonstrated their ability to grow through competitive tendering and successfully making bolt-on acquisitions. We look forward to supporting the business on the next stage of its growth story.”
Mr Leeder said: “BGF’s significant investment in the business will allow MET to continue our expansion.
“We see many opportunities for profitable growth through both the consolidation of small bus businesses, and as more local authorities place transport services to public tender.
“BGF’s investment will give us the capital to take advantage of these opportunities.”
BGF provides growth capital to small and medium-sized businesses.
The companies it backs are privately-owned or listed on AIM, and typically have revenue of between £5million and £100million.
