Transport firm TDG sold in £196m deal
EUROPEAN transport giant Norbert Dentressangle has announced that it is to buy Manchester-based logistics firm TDG from parent firm DouglasBay Capital for £196m.
The deal, which is subject to European regulatory approval, will create a combined firm with annualised revenues of €3.6 billion and would deliver critical mass in the freight forwarding sector, providing £100m worth of business. Should the deal gain approval, it is expected to complete in January and will be earnings-accretive in its first year.
TDG currently employs 6,300 people across 134 sites. Last year, it made earnings before interest, tax, depreciation and amortisation of £33m on sales of £662m.
Around 74% of its sales come from the UK market, with the remainder split between the Benelux countries, Germany, Spain and Ireland. It also operates a service in Hungary.Its 2010 revenues are currently estimated to be worth around £700 million.
Norbert Dentressangle said that it could achieve “considerable synergies” both in terms of purchasing and through optimising back office and IT functions as a result of the deal, worth around €12 million a year.
François Bertreau, chief executive officer of Norbert Dentressangle, said: “TDG is a leading player in the market and we are very happy and proud of this agreement with DouglasBay Capital.
“While retaining our financial flexibility, this transaction consolidates our presence in each of our three sectors and considerably strengthens our freight forwarding business, allowing us to better meet the needs of our clients at international level.
“I am confident in our ability to integrate TDG quickly and effectively, improving our services to clients and making the most of best practice on both sides.”
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