Issuu on Google+

M&A FOCUS MERGERS & ACQUISITIONS In the freight forwarding industry

SELLER OF THE MONTH

UK pharma wholesale, storage & distribution opportunity

BUYER OF THE MONTH

UK general forwarder aiming for acquisition

DECEMBER ���6


M&A FOCUS

P

WANT TO KNOW MORE? Further information can be found at headfordgroup.com

hew! With 2016 nearly over, a look back at what’s happened

Whilst there has been substantial development on the international

this year is in order and where better to start than with

side, Headford have also continued to complete deals in the UK,

the individual milestones Headford have achieved over the

seeing another four over the line including the much publicised

course of the previous 12 months…

sale of Fraser Freight to Jersey Post, which the team is delighted with. Taking near enough a year from start to finish it represented

Essentially it will be remembered as the year Headford went

somewhat of a change of direction from the micro-cap market deals

international, breaking out from the more confined UK market

completed in previous years to something more resembling mid-

that we’ve primarily worked in over the years to complete our

market level transactions.

first overseas company sale. In October earlier this year, after a lot of hard work and some difficult circumstances, one of our senior

Through deal completions, successful negotiations, and a specific

advisors, David Roberts, successfully brokered the sale of a US-

industry-focus, Headford have really started to build a reputable

based firm to a larger, global freight forwarder and logistics provider.

foundation for its M&A division. This in turn has seen an increased level of activity with regards to larger, mid-market interest

Turning the clock back approximately four years to when Headford

and recognition both from a buy-side and sell-side perspective.

first started up the M&A division, an achievement like this would

The pipeline for 2017 looks very promising indeed and we hope to

have been considered a pipe dream, and something that perhaps

be able to improve on 2016, realise substantial growth plans within

wouldn’t come within the first five years of deal making. David,

the M&A division. With some very exciting projects on the horizon...

however, persevered with the US market, despite it being incredibly

here’s to the New Year!

difficult to break in to, and managed to not only take on a sell-side client but also to find a suitable buyer and negotiate an agreeable deal for both parties. No mean feat and deserving of at least a round of applause. Now Headford are going in to 2017 with a sell-side portfolio including companies in India and Australia, alongside our usual UK-based opportunities – a remarkable achievement for a business that had no portfolio to speak of in 2012.

2016: Jack Lonnen, Senior M&A Advisor, Headford Strategic Growth

AN M&A YEAR IN REVIEW

50

FORWARDER magazine

December 2016

M


M&A

Mergers&Acquisitions

M&A for the global freight industry

Are you planning to buy or sell a freight forwarding company? +44 (0)1454 275930 • craig@headfordgroup.com

FORWARDER magazine

December 2016

51


M&A FOCUS COMPANIES

FOR SALE UK MULTIMODAL FREIGHT FORWARDER

LIFE SCIENCES & GENERAL FREIGHT FORWARDER

Ref. 2903FM | South East, UK

Ref. 07735FM | South East, UK

Key Business features

Key Business features

• Company trading 25+ years

• Longstanding business with over three decades of experience

• Operating across multiple locations

• Shareholders looking for controlled exit due to retirement

• 30 full-time employees

• Specialists in providing forwarding and storage services to the life sciences sector, including clinical trials

• Specialise in European full loads • Experiencing strong year-on-year growth • High volume of controlled business versus agent-driven business Main trade routes

• Office and warehouse facility, flexible temperature controlled storage, transit storage and short-term as required • Circa 120 customers with largest accounting for 12% of revenue

• Deep Sea (China)

• Highly competent team in situ comprising a manager, a DGSA advisor, a driver trained in handling dangerous goods and 2 licensed forklift operators

• Short Sea (Europe)

• Consistently high gross margin at approx. 45-50%

DAVID ROBERTS Senior M&A Advisor

JACK LONNEN Senior M&A Advisor

• UK

david@headfordmergers.com • +44 (0)1454 275 941

52

FORWARDER magazine

December 2016

jack@headfordmergers.com • +44 (0)1454 275 931


SELLING OR BUYING A FREIGHT COMPANY? GET IN TOUCH

+44 (0)1454 275 931 enquiries@headfordmergers.com

CUSTOMS CLEARANCE FOR PERSONAL EFFECTS

UK INDEPENDENT FREIGHT FORWARDER

Ref. 00191FM | South East, UK

Ref. 68321FM | North West UK

Key Business features

Key Business features

• South East-based import and export customs clearance company

• Well established after trading for over 20 years

• Clients primarily professional relocation specialist companies • BIFA and Institution of Export Member

• LCL and FCL to all parts of the Mediterranean, Middle East & Indian sub-continent, both Import & Export

• Badged at all UK major ports: Felixtowe, Liverpool, Tilbury etc.

• Strong annual sales and turnover/gross profit ratio

• Retirement-driven sale after 30+ years in the industry, happy to undertake non-compete

• Experienced, loyal, very capable senior management team

• No debts/long term liabilities attached to the operation

• 70% of their work is with other freight forwarders

• Located close to motorway network and London Gateway

• Sizable customer base, circa 200 trading clients

• Fully experienced team in place to continue the business

• 16 members of staff who will continue under new management

• The business is primarily import biased (99%)

• Owners willing to undertake a handover period

JAMES HUGHES Principal Consultant

DAVID ROBERTS Senior M&A Advisor

james@headfordmergers.com • +44 (0)1454 275 933

• Warehouse facility of 20,000sq ft. owned by the company

david@headfordmergers.com • +44 (0)1454 275 941 FORWARDER magazine

December 2016

53


M&A FOCUS

SELLING OR BUYING A COMPANY? GET IN TOUCH

+44 (0)1454 275 931

COMPANIES

FOR SALE

INTERNATIONAL INDIAN PHARMA FORWARDER BASED EXPORT FORWARDER IN N.E. ENGLAND FOR SALE

Ref. 2254FM | North East, UK

Ref. 93472FM | India

Key Business features

Headford M&A are currently facilitating the sale of an air and ocean

• Over 30 years trading; consistent annual profits year on year

pharmaceutical forwarder situated in the world’s biggest emerging

• Located at one of the business ports in Europe, in the Humberside area

market, India. Key Business features

• Strong client spread with no single client accounting for more than 10% of revenue

• Operating across 6 prime locations in India

• Established trade routes to Europe & Scandinavia short sea and China, India and USA deep sea

• Main routes: USA, Africa, Europe, Far East, Australasia

• Multi-faceted service provider including freight forwarding, ships agency, warehousing and distribution

• Turnover: $9,300,000

• Controlled exit sought by the owner due to retirement JACK LONNEN Senior M&A Advisor

jack@headfordmergers.com • +44 (0)1454 275 931

54

FORWARDER magazine

December 2016

• 18 full-time employees • 50,000ft2 of temperature-controlled warehousing • Adjusted net profit: $360,000 DAVID ROBERTS Senior M&A Advisor

david@headfordmergers.com • +44 (0)1454 275 941


UK PHARMA WHOLESALE, STORAGE & DISTRIBUTION OPPORTUNITY

COMPANY SUMMARY:

Ref. FM1512 | Home Counties - N. London Key Business features • Licensed by the MHRA for Wholesaling, Storage and Distribution of pharmaceutical and healthcare products • Long standing business with over three decades of experience • Specialists in providing forwarding and storage services to the Pharmaceutical and Healthcare sector

DOMESTIC

• Office and 15,0002 warehouse facility providing flexible temperature monitored storage, in-transit storage and short-term as required

85%

• Supported by the membership of a UK Distribution Network.

15%

WAREHOUSING

• Fantastic customer spread with largest accounting for 21.5% of revenue, the remaining top 5 each between 5-7%

FINANCIALS

• Highly competent team of 26 staff members who will continue under new management

GP: £750,000

• Owners willing to undertake a hand over period in order to guarantee the goodwill of the business

GET IN TOUCH

T/O: £1,590,000 NP: £94,000

• UK Services include - temperature controlled distribution, order pick/pack, pallet services, clinical trials & samples service (neutralisation & Freight forwarding)

+44 (0)1454 275 941

• Pharmaceutical storage – including ‘specials’ and un-licensed medicines • 24/7 365 days high dependency drug distribution service direct to all UK hospitals DAVID ROBERTS Senior M&A Advisor

david@headfordmergers.com • +44 (0)1454 275 941

SELLER OF THE MONTH FORWARDER magazine

December 2016

55


M&A FOCUS COMPANIES

SOUGHT

OIL & GAS TRANSPORT PRIVATE EQUITY PROVIDER BUILDING ENTERING EURO ITS UK PRESENCE FREIGHT MARKET

Ref. 5924FM | UK & Benelux

Ref. 8429FM | Europe

This logistics group has over 80 years’ experience and a vehicle fleet of

Our client is a long term investor who primarily operates in service

more than 114 trucks and 270 trailers, they have the capability to offer

orientated industries, with over £1bn invested into the European

all kinds of transport services for the oil and gas industry alongside a

market our client is now looking to make an investment into the

value-added service to the energy sector with warehousing, offshore

freight and logistics sector.

container and basket rentals and manpower.

Features sought

Features sought

• EBITDA of £3m with no upper limit

• Turnover £3m–£30m; EBIT range £200k–£1.5m

• Multiple locations; however, headquarters required to be based in or able to be moved to Europe

• Owners willing to commit to handover period • Any location across UK and Benelux (key oil & gas pref.) • Business to be ideally owned and controlled in house • Nuclear, aerospace and renewables are sectors of interest DAVID ROBERTS Senior M&A Advisor

david@headfordmergers.com • +44 (0)1454 275 941

56

FORWARDER magazine

December 2016

• Strong management team wishing to grow the business with an investment teams support • Air and ocean service provider JAMES HUGHES Principal Consultant

james@headfordmergers.com • +44 (0)1454 275 933


SELLING OR BUYING A FREIGHT COMPANY? GET IN TOUCH

+44 (0)1454 275 931 enquiries@headfordmergers.com

UK SME AIMING TO GROW THROUGH ACQUISITION

UK BUSINESS SOUGHT FOR LARGE EURO FORWARDER

Ref. 7594FM | South East or North West UK

Ref. 1706FM | UK

A UK SME freight forwarder with a very positive cash surplus is

A large European freight forwarder and logistics firm is looking to establish

looking to make acquisitions of air and ocean freight forwarders in

a UK footprint through acquisition. Our client carries out general freight

either the South East or North West of England. The buyer will not

forwarding including cargo and heavy movements, provides courier and

be using external funding and as such isn’t governed by rigid deal

storage solutions as well as customs clearance and brokerage.

structures set out by financiers.

Features sought

Features sought

• Turnover £1.5m-£15m with a profit margin of 10%+

• £100,000-£500,000 adjusted EBITDA

• General forwarding with a clear focus if possible on air

• 3-30 staff who wish to remain

• Management/owner to remain for a 2-3-year period

• Asset-light air & ocean service provider

• Heathrow area ideal but not essential

• Based in the South East or North West UK

• Developing Europe, Russia, China, India and Japan • Customs, oversized, LTL lines (Europe/Russia) of interest

JAMES HUGHES Principal Consultant

james@headfordmergers.com • +44 (0)1454 275 933

JACK LONNEN Senior M&A Advisor

jack@headfordmergers.com • +44 (0)1454 275 931 FORWARDER magazine

December 2016

57


M&A FOCUS

SELLING OR BUYING A COMPANY? GET IN TOUCH

+44 (0)1454 275 931

COMPANIES

SOUGHT

INT'L LOGISTICS GROUP GROWING BY ACQUISITION

HUMANITARIAN AID ...US-BASED FORWARDER

Ref. 5579FM | Europe, USA or Asia

Ref. 2602FM | USA

An internationally headquartered logistics service provider is aiming

Headford Strategic Growth are instructed to identify companies based

to meet the growth targets set by its board for 2016 and 2017. With

in the United States of America who will either be interested in being

multiple high profile European and global acquisitions completed in the

acquired or establishing a joint venture. Our client offers services

past five years this group offers company owners an opportunity to

to a wide variety of end clients, including governments, charitable

continue within the group or to fully exit the industry in a timely manner.

organisations and NGO’s. Regularly arranging the movement of freight

Features sought

to some of the most challenging locations around the world, including

• Forwarders based in Europe, USA or Asia

Afghanistan, Syria, Iraq and a number of African countries. Due to the

• Air & Ocean service providers of high interest • Net profit of £200,000-£5,000,000 • Owners open to remaining or retiring JAMES HUGHES Principal Consultant

james@headfordmergers.com • +44 (0)1454 275 933

58

FORWARDER magazine

December 2016

United States being one the largest providers of overseas aid goods to the regions in which our client is a specialist they are keen to develop their US operation. Our client requires a business with experience in arranging the movement of freight to dangerous or conflict areas. JAMES HUGHES Principal Consultant

james@headfordmergers.com • +44 (0)1454 275 933


UK GENERAL FORWARDER AIMING FOR ACQUISITION

FEATURES SOUGHT:

Ref. 3130FM | UK

MODE

Having made four successful acquisitions in the last six

International

years, one of the UK’s fastest growing logistics providers is

and domestic

aiming to continue this growth with fresh acquisitions. The

FINANCIALS

management are focussing on acquiring asset light air/ocean

EBIT: £200k+

companies in addition to companies offering European / UK

GET IN TOUCH

haulage and pallet services.

+44 (0)1454 275 931

Features sought • Positive balance sheet and three years of steady or increasing profits • EBIT no less than £200k • Broad client base with a good spread of clients • Owned/controlled business making the majority of customer book • Business based in the North of high interest, but not essential

JAMES HUGHES Principal Consultant

james@headfordmergers.com • +44 (0)1454 275 933

BUYER OF THE MONTH FORWARDER magazine

December 2016

59


+44 (0)1454 275930 • enquiries@headfordmergers.com www.headfordgroup.com

Headford Mergers & Acquisitions are specialists in selling owner-managed freight forwarding businesses. For most company owners, selling their freight forwarding business is the most important ďŹ nancial transaction of their life. To meet the challenge of getting a fair price for a business, we have developed a proactive approach to selling a business that connects buyers with sellers with the best synergy. We have over ten years of experience in the freight forwarding sector and, due to our niche-specialist approach, can put you in touch with the best sellers for your business.

M&A for the global freight industry 60

FORWARDER magazine

December 2016


Are you planning to buy or sell a freight forwarding company?

Mergers&Acquisitions FORWARDER magazine

December 2016

61


JAMES HUGHES

Principal Consultant james@headfordgroup.com +44 (0) 1454 275 933

DAVID ROBERTS

Senior M&A Advisor david@headfordgroup.com +44 (0)1454 275 941

HEADFORD STRATEGIC GROWTH LTD

8 Apex Court, Almondsbury Business Park, Bristol BS32 4JT +44 (0)1454 275 931 www.headfordgrowth.com

JACK LONNEN

Senior M&A Advisor jack@headfordgroup.com +44 (0)1454 275 931


FORWARDER M&A Focus