Trucking firm snapped up by private equity investor

The Shilling Group has acquired a Shropshire logistics business, after securing a £2.75m finance facility from Paragon Bank.

Simmonds Transport has been purchased by the trading arm of Birmingham-based private equity investor Shilling Group, which has plans to invest £3m in fleet efficiency and reducing emissions.

The invoice finance facility from Paragon has enabled Shilling to raise finance against Simmonds Transport’s debtor book from existing contracts, which it utilised to support the purchase and post-completion working capital.

Shilling Group specialises in delivering acquisitions and operates various businesses through its trading arm.

Established over 45 years ago, Simmonds Transport, a logistics and warehouse storage company in Telford, manages over 250,000 square feet of warehousing and operates a large commercial vehicle fleet.

Steve Holmes, senior sales manager for invoice finance at Paragon, led the deal.

He said: I am delighted to complete another transaction with Shilling Group. As a specialist invoice finance lender, we understand what is required to support a business acquisition and, through a close relationship with Shilling, we helped finalise the purchase of Simmonds Transport in the timelines required. The debtor book is a great way to help in the sale and purchase of a business, and one that is sometimes overlooked.”     

Bart Walkerdine, group operations manager for Shilling Group said: “It is always good to work with Steve and the Paragon Team as they genuinely understand the acquisition process, as well as the post-completion cashflow needs of an acquired business. Having an institution such as Paragon backing our Simmonds Transport venture has given us the ability and confidence to begin executing a £3 million program to increase the efficiency and reduce the emissions of the Simmonds fleet as part of our overall growth strategy for the business.”