Caledonia to Invest in Conquip Engineering

• Caledonia has acquired a majority stake in Conquip Engineering Group Holding Company Limited ("Conquip" or "the Business"), which has a reputation for delivering best in class products and solutions to the infrastructure, utilities, energy and built environment sectors.
• Conquip is a family-owned business led by brothers Daniel and George Critchley, who will continue to lead the company and will reinvest alongside Caledonia.
• Caledonia's investment will support Conquip's next phase of growth through continued expansion of its rental fleet, the national rollout of its specialist shoring proposition and further product innovation.

Caledonia Investments plc ("Caledonia") is pleased to announce that it has invested £49.5 million to acquire a majority stake (61%) in Conquip and provide investment to support future growth.

Founded in 2003, Conquip has established its place in the market by supporting customers to increase productivity and efficiency and improve sustainability. The Business is trusted by customers on many complex projects through its nine regional locations. Employing approximately 250 people, Conquip serves a diversified customer base with predominant exposure to infrastructure and utilities sectors alongside housebuilding and the built environment.

The Business has established a strong reputation for customer-led innovation and the provision of safety-critical products and services that increase productivity. Caledonia's investment will enable Conquip to continue to strengthen its position as a partner of choice for customers, supporting them through excellent service and best in class products and solutions.

Conquip's equipment rental activities and the recent acquisition of ProMech have further broadened its proposition, adding specialist engineering capabilities in more complex shoring applications. Combining this expertise with Conquip's national depot network, established customer relationships and trusted brand creates an opportunity to serve a broader range of customer requirements and expand the combined proposition nationally.

Caledonia will partner with management to support Conquip's continued development, including increasing penetration with existing customers, expanding geographic coverage, investing in the rental fleet, scaling its shoring proposition, developing new products and pursuing selective acquisitions.

Tom Leader, Head of Caledonia Private Capital, commented:

"Conquip is a high-quality and differentiated business with a strong management team, market-leading products and clear opportunities for continued growth. Its focus on safety, customer service and innovation has enabled it to create trusted, long-standing relationships across the UK construction industry.

We have developed a strong relationship with management and the wider team and look forward to supporting the growth and development of the Business."

Daniel Critchley, Chief Executive Officer of Conquip, commented:

"We are delighted to be working with Caledonia on the next stage of Conquip's development. Finding an investor that understands our culture and shares our ambitions was particularly important. Caledonia's long-term mindset, experience of supporting entrepreneurial businesses and collaborative approach made them a natural choice."

Transaction

Caledonia's investment in Conquip was led by Theo Tizard, James Lander, Chris Hodges and Will Sym.

Stephenson Harwood (Malcolm MacDougall, Lucy Thorpe and Rajiv Kakkad) provided legal advice, CIL (Jon Whiteman and Tim Perera) provided commercial due diligence, Deloitte (Tim Haden, Matthew Crocker and Sam Ward) provided tax advice and Stifel (Phil McCreanor and Teodora Sabeva) provided corporate finance advice.

Clearwater Corporate Finance (Zack Goddard, Michael Loudon, Richard Clark, Declan Warwick, Harry Talks and Eva McBride) provided corporate finance advice to the vendors and legal advice was provided by Squires Patton Boggs (Paul Mann, James McKay, Louise Parker and Vicky Jew). Commercial due diligence was provided by LEK (Jeremy Wheatland, Tom Diplock and Jonathan Hillcoat) and financial and tax due diligence was provided by KPMG (Glynn Bellamy and Nadina Crossen).