Deals
Trafuco
Buy & Build
How DCF's Tim Messagie supported Trafuco in it's buy & build trajectory
01
Client situtation
Belgian private equity firm 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 by building scale through a buy-and-build strategy in what was a very fragmented landscape.
02
DCF’s role
After closing, Tim joined Trafuco as part-time CFO. In a first instance, this led to a well-thought-out strategy built around the gradual specialisation of Trafuco into the technical handling of hazardous liquids for AAA clients. After setting the strategy, the team went to work executing 7 consecutive add-on transactions – adding scale in high-value add specialised services, repackaging low-value activities and successfully divesting these.
Outcome
Down2Earth successfully sold Trafuco in 2021 at a multiple of 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 well-structured group and an integrated apparatus meant the group constituted a very strong platform able to provide future growth
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