KELSO PLACE ACQUIRES THE UK’S LEADING DRIVING INSTRUCTOR TRAINING BUSINESS

22 February 2010: Kelso Place Asset Management (“Kelso Place”), the London-based private equity firm, announced today that it has acquired, as a going concern, the business and assets of LVG Limited. The business will continue to trade as RED under the brands RED Driving School, RED Instructor Training and RED Fleet Training.

RED has traded strongly since its creation in 1992 and is now the UK’s leading driving instructor training business and the UK’s fastest growing driver training school. It has revenues of approximately £40 million and 400 employees. In the last 5 years alone, RED has helped more than 10,000 people pass their DSA exams and start new careers as driving instructors.

However, a short term funding shortfall arising from a change in its banking arrangements caused the company to be placed into administration on 16th February 2010. Kelso Place has made a significant equity investment in RED, from its new £100 million Special Situations Fund, which allow RED to continue to offer its market leading products to its customers.

Philip Weston, Partner at Kelso Place said today:
“RED is a very strong, stable and profitable business, which experienced a short term funding difficulty when its financing facilities were changed suddenly. We have made a significant cash investment in RED in order to solve its funding problem and to ensure that it is able to continue operating successfully for the long term.”

David Downing, Chief Executive Officer of the RED business, said today:
“Throughout this short period of administration, the company has continued to trade as normal. As a result of Kelso Place’s investment, RED is now in a very strong financial position, which will enable us to maintain our high levels of customer service and cement our market leading position.”

RED Instructor Training, which trains people to attain their Approved Driving Instructor qualification, is the largest part of RED’s business. RED Driving School is a rapidly growing division and offers a franchise package to Driving Instructors. RED Fleet Training sells consultancy and management services to organisations with car fleets who are seeking to mitigate Occupational Road Risk.

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For any further queries, please contact:
RED Head Office
The Lansdowne Building
Crowhurst Road
Hollingbury
Brighton
BN1 8AF