£5m BGF deal helps Staffordshire logistics firm fund takeover bid

THE Birmingham-based Business Growth Fund has invested £4.9m in a logistics firm to help towards the cost of a key acquisition in the North West.

PPS, which has operations in South Staffordshire, intends using the investment acquire Alison Handling Services, the UK’s largest independent stockist of returnable plastic packaging.

PPS, which also has an operation in Grimsby, currently moves 25m trays and pallets a year. It offers delivery, collection, asset tracking and hygienic washing of plastic pallets and trays to customers in the fresh produce, industrial, office moves and automotive sectors.

Alison Handling Services, which is headquartered in Kirkham, near Preston, is the largest independent stockist of new and used plastic boxes, containers and trays in the UK. The acquisition will enable PPS to expand its current services so that customers have access to a full range of packaging solutions and load carrying equipment.

In addition to the acquisition, PPS will use BGF’s funding to expand its product range and take advantage of a number of exciting customer opportunities.

David Peggie, Chief Executive of PPS, said: “We are proud to be able to take on the exceptional services and impressive customer base Alison Handling has created.

“Looking ahead, BGF’s long-term investment approach gives us the time and financial support to pursue the market opportunities that we know exist for PPS, including possible future acquisitions.”

Mark Freer, of BGF, said: “PPS has experienced exceptional growth in recent years under the leadership of the current management team. The business has an attractive customer proposition that will become even more relevant in the future as companies across a range of sectors look to lower their costs whilst looking for a more environmentally friendly alternative to single trip packaging. With BGF’s backing, PPS is well positioned to take advantage of these opportunities.”
 
The investment was led by Mark Freer, Paul Brindley, Joanne Smith.

The advisers to the transaction were:

BGF:

Legal – Browne Jacobson (Mike Jackson)
EFD – Mark Harrison
Tax – Claritas (Iain Wright, Ses Memhi)

PPS:

Advisor – Transcend Corporate Finance (Ian Curtis)
FDD – BDO (Graham Elsworth, David Billington)
Legal DD – Wilkes Partnership (Rick Smyth, Michael Linford)
Tax – Spencer Gardner Dickins (David Thomas)

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