Southern expansion for Clipper after £12m acquisition
Logistics firm Clipper has snapped up a distribution business in a deal worth just under £12m.
Leeds-based Clipper has bought Tesam Distribution for £11.75m and the deal will see the group expand its operations down south. Previously acquisition-shy, one of its last acquisitions was Servicecare Support Services which it bought for £5.7m in December 2014.
Tesam supplies warehousing and distribution services to the retail sector, operating from three sites in and around Peterborough, and employs around 250 people.
Clipper has bought the company from managing director and principal owner Stephen Smith who will become a consultant to the group following completion. The other members of the management team will remain as full time employees of the business.
Established in 1984, it was originally based in London’s Docklands Enterprise Zone. It now has 1.1 million sq ft of space at its disposal, and turned over £19.6m in the year to 30 June 2016. Clipper will redevelop its Ivatt Way site to increase capacity.
The acquisition is being funded in cash from Clipper’s existing cash and bank facilities.
Assets being acquired include cash of £3.4m and a freehold property which will be sold post-acquisition and is expected to realise £2.7m.
Steve Parkin, executive chairman of Clipper and this year’s winner of TheBusinessDesk.com’s Ambassador of the Year award at the 2017 Business Masters said: “Tesam is a successful and robustly profitable and cash generative business which we have known for some time.
“The acquisition, coupled with our planned investment in additional capacity, will enable us to offer existing and prospective customers of both Clipper and Tesam greater operational flexibility, and will provide further headroom for the delivery of our strong business pipeline.
“We welcome the employees and management team to the Clipper Group and look forward to continuing to build the breadth and depth of our services and customer base.”
Clipper has been growing the business since its IPO in 2014, attracting clients in Halfords and M&S most recently.
Dow Schofield Watts’ transaction services team provided financial due diligence on the deal.
