Alinda buys infra equipment firm

Kelling Group, which owns and leases equipment for rail, road and telecom maintenance, ‘benefits from capital expenditure across all critical infrastructure sectors’.

Alinda Capital Partners, a Connecticut-based infrastructure investment firm, has bought Kelling Group, a firm specialising in equipment used in infrastructure upkeep.

Alinda acquired the company from London-based Elysian Capital. The firm would not disclose the price of the deal.

Headquartered in West Yorkshire, Kelling owns and leases equipment needed to maintain infrastructure across Great Britain, including rail, roadways, telecommunications infrastructure and electric transmissions. The firm is also the country’s largest provider of vehicle-mounted access platforms.

While most of Alinda’s investments entail ownership of an infrastructure asset, Alinda’s management said Kelling falls into the infrastructure category because the performance of the business is linked to the UK infrastructure market.

“While it is one step removed from rail, road and utilities, it benefits from capital expenditure across all critical infrastructure sectors,” Andrew Bishop, Alinda’s head of Europe, told Infrastructure Investor.

Ronan Tunney, a director at the firm, added: “It could be viewed as a hybrid investment with the performance of the business linked to capital expenditure in UK infrastructure, which is ramping up post the Brexit vote.”

The acquisition is not Alinda’s first investment to push the boundaries of the asset class. In 2016, the firm led a consortium buying Energy Assets Group, a Glasgow-based utility metering firm. Alinda has also exited investments in Republic Intelligent Transportation Services, an American streetlight and travel signal maintenance firm, as well as Reliance Protectron and Reliance Home Comfort, Canadian businesses specialising in security services and water heater and HVAC rental, respectively.

Alinda has been on the road since 2015 for its third infrastructure vehicle, which was originally said to be targeting $5 billion, but recent fundraising documents seen by Infrastructure Investor place the fund’s final size at $2 billion, with a final close date of March. Alinda Infrastructure II closed in early 2010 on around $4 billion.