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9.7.18
UPTIME REDEFINED Operator acquires share capital of network on a cash and debt-free basis for £52.8m
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Stobart snaps up TPN By Chris Druce
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Eddie Stobart Logistics has purchased The Pallet Network (TPN) for £52.8m. The operator confirmed last month (28 June) that it had entered into an agreement to acquire the share capital of the network, which comprises 106 regional hauliers, on a cash and debt-free basis. It has done this, in part, via a £30m share placing with institutional investors. Alex Laffey, CEO of Eddie Stobart, said: “We are delighted to be able to invest in TPN as this significantly enhances the skills and capabilities of Eddie Stobart in a space we do not operate in. Furthermore, it strengthens our position as a leading provider of end-to-end supply chain solutions. “The TPN team, led by MD Mark Duggan, has continued to deliver strong growth since the business was founded in 2000, resulting in an excellent
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and strong service performance for customers.” Laffey added that the members of TPN were experts in their own regions and had substantial experience of finalmile pallet solutions. “During my discussions with TPN, I have been extremely impressed with the enthusiasm and expertise of the leadership team and members I’ve met so far. I am looking forward to working with them and I’m confident we will identify opportunities that will provide mutual benefit and grow both our networks,” Laffey said.
Duggan, who will stay in his role, said: “Eddie Stobart has an ethos that fits with ours and shares our long-term vision. This investment has enabled the smooth exit of our previous investors and provides us with immediate operational synergies for our member network. “We have ambitious plans and this new partnership will help us achieve and deliver long-term sustainable growth.” A company statement added: “This significantly enhances Eddie Stobart’s existing skills and capabilities, including meeting customer requirements for smaller load
All MT Awards images: Tom Lee/Darren Pepe
GLITTERING PRIZES: Royal Mail and Whirlpool UK Appliances each picked up two awards at the 2018 Motor Transport Awards at a ceremony hosted by Jimmy Carr and Rachel Riley in London’s Grosvenor House Hotel. They weren’t the only winners, with Stephen Sanderson Transport taking home Haulier of the Year; the MAN TGX winning Fleet Truck of the Year, and Turners (Soham) MD Paul Day wining the Service to Industry Award. Anne Preston, director of Prestons of Potto and Scania Hall of Fame inductee, received an ovation after a stirring speech about fun, the road transport family and the government’s need to get a move on with Brexit. See page 24 onwards for more.
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deliveries. It positions Eddie Stobart in an attractive segment that has grown at a significantly greater rate than the wider logistics market over the past three years. “This will benefit both businesses and TPN’s members, through cross-selling to existing Eddie Stobart customers, and collaboratively deploying Eddie Stobart’s enhanced operating model into Europe.” The acquisition provides an exit for TPN backer LDC, the private equity arm of Lloyds Banking Group. Speaking to MT, Palletforce CEO Michael Conroy said: “This reaffirms that the sector has matured and we need to work together. I believe in four years’ time there will only be four pallet networks. We intend to remain acquisitive and we are determined to do it. [Consolidation] will improve the offering and secure the members’ long-term future.”
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