Catalyst delivers advice on courier financing

CATALYST Corporate Finance has successfully advised on a financing deal for the UK’s leading same day distribution company.

CitySprint is the UK’s market leader in the same day delivery sector with a national network of 31 service centres.  Turnover has grown through the recession from £46m in 2007 to a forecast £61m in the year ending December 2010.

Significant equity funding to support the growth plans is being provided UK mid-market private equity firm Dunedin

The deal was originated by Catalyst, which acted for CitySprint’s management team and shareholders.Legal advice was provided by HBJ Gateley Wareing.

Andy Currie, managing partner of Catalyst, said: “CitySprint is a first class business and a leader in its sector. The company benefits from having postcode density meaning it can react far quicker to customer needs and is focused on a same-day delivery service.

“It has a strong presence in the healthcare and retail sectors and is exploring new opportunities for growth.”

He said CitySprint’s management team had the opportunity to grow the business, both organically and through acquisition, and added that from Catalyst’s viewpoint the transaction met all the objectives laid down by the courier and its management.

CitySprint will continue to be run by the current chief executive, Patrick Gallagher and existing finance director, Gerard Keenan.  

Mr Gallagher said: “This deal does not signal any significant change to how we run the business; it provides us with further opportunities to strengthen through investment both our service offerings and national coverage.”

Nicol Fraser, of Dunedin will join the board of CitySprint.