Management team drives off with transport business
Logistics company Walkers Transport, based in Manchester and Leeds, has undergone a management buyout in deal which values the business at £20m.
Private equity company Total Capital Partners is providing £13.5m of equity and debt and will take a 60% stake in Walkers.
It is the second investment Total Capital has made this year and follows the MBO of Weird Fish, a lifestyle leisurewear clothing brand, which completed in April.
Walkers Transport carries ambient, non-hazardous, palletised goods for a broad range of manufacturers, retailers, wholesalers and distributors.
The company comprises George Walker Transport, George Walker Transport Manchester and Northern Hub.
Walkers was founded by current owner Nigel Jenkinson who will continue to be involved in the business as a non-executive director and consultant.
As a result of the MBO, ownership will transfer to the management team led by chief executive Richard Simpson, with Jenkinson retaining a minority stake.
Walkers has seen strong growth over the last few years with turnover increasing from £18m in 2014 to £25m in 2016. The business currently employs about 240 people.
The new management team plans to continue to grow and develop its competitive service offering in the M62 corridor. In addition, it is expected that there may be opportunities to acquire further businesses where existing owner-managers are looking to retire.
The deal was led by Mark Buttler who joined Total Capital as a partner in November, 2016.
He said: “Walkers is fantastic business with a market leading reputation and strong potential for further growth.”
Simpson added: “We are excited about the future and we are looking forward to working with Total Capital as we enter our next exciting phase of growth.”
Clarion and BHP advised Nigel Jenkinson and the management team with a team led by Jonathan Simms and Hamish Morrison respectively.
