BGF invests £8m in plant hire company Hawk Group

Shropshire-based Hawk Group, the UK’s largest, privately-owned operated plant hire and earthworks company, has received an £8m growth capital investment from BGF (Business Growth Fund). Founded in 1974 and located in the West Midlands, Hawk Group has been involved in major UK infrastructure projects including the building of the Olympic Park, Hinkley Point C nuclear power station, the Channel Tunnel Rail Link and Crossrail. Today, the business employs nearly 500 people, generates revenues close to £70m and owns and operates a modern construction fleet of more than 2,000 items including excavators, dump trucks, telehandlers and bulldozers. Hawk specialises in providing a fully serviced, maintained and managed fleet either on an operated or self-drive basis to some of the biggest projects and contractors in the UK. The business has invested heavily in machinery and equipment in recent years to support strong growth, and has built a reputation for operating a modern and well maintained fleet, as well as providing additional services such as bulk earthmoving, site remediation, agri-tractor hire to the agricultural and construction markets, materials testing, heavy haulage, construction plant training, and the rental of site accommodation units. With the addition of BGF’s funding, Hawk Group will continue to develop its fleet and respond to the ever increasing demand for plant hire and construction services, which is expected to be fuelled by investment in major UK infrastructure projects and an increase in housebuilding across the country. Hawk is also extending its services into sectors such as quarrying. The company is led by Mike Hawkins, Group CEO and last year won “Best Business of the Year” and “Best International Business of the Year” at the Shropshire Business Awards. Bill Bolsover CBE will join the board of the company as Non-Executive Chairman following an introduction made by BGF. Bill’s last position in the sector was CEO, and then Chairman, of Aggregate Industries, the Lafarge HOLCIM arm in the UK and the USA, and now sits on or chairs other boards. Mike Hawkins commented: “By focusing on building and maintaining a modern fleet and offering our customers’ additional value through our fully managed fleet services, we have created a solid customer base and opportunities to scale-up even further. “Given the level of investment in large scale infrastructure projects and housebuilding, the needs of our customers will increase as they themselves take on more work. Bringing BGF on board means that we are extremely well placed to keep ahead of this increased demand. We are also delighted to welcome a Chairman of Bill Bolsover’s quality to the board.” Bill Bolsover CBE said: “Hawk Group is already a company of significant size and reputation. Going forward, the UK construction sector continues to offer opportunities for the Group, and there are new sectors which Mike and his team are keen to explore – both of which will drive additional activity and growth. I am looking forward to joining the Board and helping Hawk Group scale up its operations even further.” Jon Earl, an Investor at BGF who joins the board of the Hawk Group as a Non-Executive Director said: “BGF exists to help established UK businesses and entrepreneurs reach their full potential by removing or reducing barriers to growth. As a minority, non-controlling partner, we focus on finding strong management teams and business owners that want to accelerate growth. “Mike and his team are an example of the first-class entrepreneurial talent that exists in Britain. They have created a niche in their market, a strong reputation and in-depth understanding of their industry and the needs of their customers. We are delighted to be supporting them.” The investment was led for BGF by Jon Earl, Aaron Baker and Ian Downing. The advisers to the transaction were: For Hawk Group: Aaron and Partners LLP, D.R.E. & Co., Fraser Hall For BGF: Geldards LLP, Claritas Tax Limited

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