Deals
Trafuco
Buy & Build
How DCF's Tim Messagie supported Trafuco in it's buy & build trajectory
01
Client situtation
Belgian private equity Down2Earth acquired Trafuco in 2015. DCF’s Tim Message was involved from the onset, supporting the principal with in depth financial due diligence on the asset. Speciality transport was seen as high potential, with Trafuco a strong asset, through the opportunity to enter at low multiples and create value building scale through a buy-and-build strategy in what was a very fragmented landscape.
02
DCF’s role
Belgian private equity Down2Earth acquired Trafuco in 2015. DCF’s Tim Message was involved from the onset, supporting the principal with in depth financial due diligence on the asset. Speciality transport was seen as high potential, with Trafuco a strong asset, through the opportunity to enter at low multiples and create value building scale through a buy-and-build strategy in what was a very fragmented landscape.
Outcome
Down2Earth successfully sold Trafuco in 2021 at a multiple almost 40% higher than the initial purchase.
- The group put up for sale had morphed into the #1 Belgian transport group for hazardous liquids – with strong technical skills and a recurring base of AAA clients. The barriers to entry and premiumisation led to materially higher margins for the business
- Increased scale, a simplified well structured group and integrated apparatus meant the group constituted a very strong platform able to provide future growth
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