May Gurney Integrated Services plc has acquired TransLinc – a provider of specialist fleet & passenger services to UK local authorities – in a deal worth around £66 million.

May Gurney, a Norfolk based support services company, has paid £34.9m cash for the equity and loan notes of the business. It will also assume around £30.7m of customer contract-backed fleet financing obligations.

TransLinc is a market leader in the UK's £730m per annum local authority specialist fleet services and £3 billion local authority passenger services markets. Its acquired order book is £85m – supplementing May Gurney's own of £1.5 billion.

More than 90 per cent of its clients are in the public sector. May Gurney says it has identified long-term growth dynamics and significant cross-selling opportunities.

The deal strengthens May Gurney's market leading positions in highways maintenance and environmental services and augments its existing plant management expertise.

TransLinc is cash generative and the transaction is expected to be earnings and margin enhancing in the first year of acquisition.

May Gurney chief executive, Philip Fellowes-Prynne, said: “This acquisition is a good strategic fit and is expected to be earnings enhancing in the first year.

“It brings into the May Gurney Group a portfolio of services and clients which are highly complementary to our existing business, augmenting our strong positions in highways and environmental services as well as further establishing the group as the leading support services business in the UK.”

Originally part of Lincolnshire County Council, TransLinc employs over 400 people.

• PHOTOGRAPH SHOWS: Philip Fellowes-Prynne