Logistics group bought in £160m deal

LOGISTICS group Palletways has been bought for £162.9m by South African giant Imperial Holdings.

Palletways is based in Lichfield and operates in 20 European companies, which it says makes it Europe’s largest palletised freight network.

James Wilson, chief executive at Palletways, said: “We are delighted to be working with Imperial as we move to the next stage of Palletways’ development by continuing to expand into new markets, while enhancing our member and customer experience.

“The Palletways management team shares a common vision with Imperial and remains fully committed to the business as we pursue our strategy for further growth. This is an exciting opportunity for Palletways, and all its members, to build on our success.”

The group made a small pre-tax profit of £737,000 in the year to May 2015 on turnover of £237m – which had increased by £90m in four years. It currently employs around 500 people.

Mark Lamberti, chief executive at Imperial, said: “Palletways’ business model and geographic reach will be complementary to our existing services and networks in the logistics sector. We admire the past achievements of the management team and look forward to working with them to enhance Palletway’s presence and service in the United Kingdom and Europe.”

The deal sees the exit of Phoenix Equity Partners, which has backed the group since 2004 during which it has helped “to expand a UK business into a European market leader”, said Phoenix’s managing partner Richard Daw.

Imperial was advised by Squire Patton Boggs, led by corporate partner Richard Hunt with Hannah Graham and Peter Morley.

Mr Hunt, who described the deal as an “important strategic acquisition”, said: “We are delighted to have advised Imperial on this transformative acquisition, which will enhance the Imperial’s pan-European logistics capability and lead to further growth opportunities.”