Private equity firm delivers on £17m logistics MBO
A MIDLANDS logistics business has undergone a £17m management buyout in a deal funded and advised out of the region.
Panther Logistics, based in Northampton and with a depot in Rugby, is the UK’s largest independent two-man next day home delivery provider.
It specialises in two-man and one-man assisted delivery services for major brands and retailers, including Dunelm, Silent Night and Bosch Siemens Group.
It provides customers with next day deliveries and UK-wide coverage via a network of eight regional hubs and employs 300 people, expanding to over 800 with additional temporary staff during peak periods.
Panther has more than doubled sales in the last two years to almost £30m.
The buyout was led by Panther’s managing director Colin McCarthy, alongside seven other members of the management team. As part of the deal, LDC has acquired a significant minority shareholding in the firm, enabling its founder, Wilson Barrett, to retire.
The firm has also appointed Greg Ball as a non-executive chairman. Mr Ball’s retail career includes senior positions with Littlewoods and Home Retail Group, where he was a main board director with responsibility for its home delivery operations.
LDC provided funding for the deal. The transaction was led by LDC investment directors Rob Schofield and Victoria Marcer, who both join the board, and was supported by senior debt facilities from Santander’s Structured Finance team in the Midlands.
Mr McCarthy said: “This is an exciting point in the business’ journey for our employees and customers alike. Bringing on board an experienced investment partner like LDC provides a springboard for further growth and investment. We were impressed by the team’s understanding of our business, LDC’s track record in the sector and their commitment to helping us achieve our long-term ambitions.”
He added: “With the growth of online shopping forecast to continue, the quality of delivery has become a key differentiator for many retailers and a key deciding factor for consumers. We now have the ideal opportunity to consolidate our position in the market through continued investment and innovation.”
Mr Schofield said: “Panther is a great example of the type of business we’re keen to support. It has successfully positioned itself at the forefront of the fast-growing specialist delivery sector, capitalising on consumer trends that have seen delivery service come to the fore. The firm has a highly experienced management team led by Colin McCarthy, and we look forward to working with them to support their ambitions for further growth and development.”
LDC was advised on the deal by Gowling WLG UK, BDO Birmingham, PwC and CIL. Panther was advised by Livingstone Partners and Howes Percival.
