Lee’s Coaches of Durham has been purchased by north east England-based investment firm Alpro Capital.
It is the first acquisition in the coach industry by Alpro Capital. The business has been set up by David Alprovich to buy and grow profitable businesses in the north east with earnings before interest, taxes, depreciation and amortisation of between £250,000 and £700,000. Lee’s Coaches marks its opening such investment.
The operator has a modern fleet of vehicles with an O-Licence authorising 24 vehicles. Thirty staff are employed. It delivers home-to-school transport, private hire, tours and day trips and sports-related work in the UK and Europe.
Alpro Capital says that its strategy centres on supporting existing management teams, preserving well-established brands, and providing the resources needed to accelerate growth. The deal follows previous private equity interest and acquisition in the coach industry.
Noting how it is committed to investing in established regional businesses with strong fundamentals and long-term growth potential, Alpro adds how future purchases “will focus on coach travel; using Lee’s Coaches as a platform, acquisitions can provide synergies and logistical benefits.”
Speaking about the development, Mr Alprovich says: “Before acquiring Lee’s Coaches, I looked at more than 100 opportunities and met with over 40 business owners across a range of sectors.
“Lee’s stood out because of its heritage, strong reputation, loyal customer base, and experienced team. The UK coach travel market is worth around £8 billion annually with around 3,000 operators.
“We are looking at new marketing channels and using data to maximise fleet utilisation. In the future, I feel that bolt-on acquisitions could be an attractive route to growth.”
The purchase was supported by Middleton Enterprises, where Mr Alprovich spent 16 years working alongside entrepreneurs and growth businesses in a range of sectors.
An interview with Mr Alprovich will follow in the June issue of routeone in print, and published online on Monday 16 June.
