The Mailing Room acquires Franking Direct
Bury-based The Mailing Room has acquired independent franking machine supplier, Franking Direct, of Brentwood, Essex, for an undiscosed sum.
The deal is part of the firm’s ambitious programme of growth aimed at doubling the size of its business within five years.
The acquisition strengthens TMR’s market presence in the outer London area and provides ongoing revenue through the provision of mandatory inspection and maintenance of franking equipment, as required by the Royal Mail, and the sale of inks, labels and other consumables through its online and telephone support services.
Unlike Franking Direct, which relied on manufacturers to provide routine machine inspection and maintenance, TMR is a Royal Mail-licensed servicing organisation able to offer direct technical support for its users anywhere in the country, through its own team of factory-trained mobile engineers.
Currently celebrating its 20th anniversary in the UK mailroom sector, TMR has demonstrated consistently strong growth over the years.
Headed by ex-county cricketer, Ian Davidson, TMR employs more than 60 staff, divided across the head office team and field-based account managers and service engineers, and has been responsible for the installation and servicing of more than 8,000 user sites.
Following the recent purchases of West Country independent supplier, Mailing Systems, and Sussex-based MailServe, TMR is enjoying a strong period of business expansion, through acquisitions and organic growth, and the addition of Franking Direct continues that trend.
As with the earlier company purchases, Franking Direct’s business will be seamlessly integrated into the Bury head office operation, allowing them to benefit from the economies of scale available at TMR.
“This acquisition brings excellent profit growth both in the short and long terms, due to the increased customer number and recurring revenue from maintenance income and consumables sales, whilst giving us further geographical reach in the South East,” said group managing director, Ian Davidson.
“We look forward to supporting the new customers alongside our existing TMR clients by continuing to provide high service levels, increased access to innovative technology and improved post room efficiencies.”
The Mailing Room’s acquisition was supported by Jean Bevan, head of Bevan Kidwell’s Corporate Commercial Department, and from the Manchester office of audit, tax and consulting practice RSM.
“It’s always a pleasure to act for ambitious, acquisitive companies and we were delighted to advise The Mailing Room on their third acquisition in 12 months,” said RSM corporate finance partner, John Gillibrand.
“This latest deal strengthens TMR’s market position and share, in what is an exciting time for the company.”
