Van Elle sells off its heavy haulage division

Engineering contractor Van Elle has sold its heavy haulage division to redirect investment spending into core areas and reduce its debt.

Runcorn-based WS Specialist Logistics has paid £2.9m to take on Van Elle’s in-house HGV fleet as well as its transport management team and directly-employed drivers.

WS has facilities close to Van Elle’s headquarters in Nottinghamshire. The two companies have already worked together for several years and have now agreed a five-year partnership.

Mark Cutler, chief executive of Van Elle, said: “This new partnership with WS Specialist Logistics is a logical initiative for the group; releasing capital to invest in areas of greater return as we enter a long-awaited period of anticipated growth in our core markets.”

Van Elle will reallocate the current capital employed plus the further planned investment required in the HGV fleet over the medium term “into growth initiatives driving greater returns for shareholders”.

It has reduced its funding facility with ABN AMRO from £11m to £8m, of which approximately £6.5m will remain undrawn after completion.