Investors’ consortium helps distribution business gear up for expansion

The consortium of private investors which has completed the acquisition of transport specialist Clugston Distribution Services say the move prepares the company for growth, as well as changes in post-Brexit trading patterns.

The deal will also see the Lincolnshire-based top ten haulage specialist bring Clugston International Trading Limited into a group led by newly-appointed CEO Alistair Clugston. More than 160 staff are employed by the two firms.

The expanded business will invest in its range of specialised transport services, including bulk powder, steel and long products, fuel distribution and general haulage.

And the company has a Renault UK Truck franchise while providing commercial vehicle engineering and maintenance services with a DVSA MOT and tachograph testing facility at its facility in Brigg Road, Scunthorpe.

“I’m pleased to welcome our new investors on board,” said CEO Alistair Clugston, the great grandson of JG Clugston, who first started the transport operation in 1922.

“They value our heritage greatly and are working with us to create a modern transport business focusing on a range of specialisms and which operates regionally and nationally.”

The company has also received a multi-million pound line in working capital from Bibby Financial Services to support its growth plans.

Alistair Clugston said the firm is on a very sound footing as transport markets change in light of post-Brexit shifts in trading patterns.

“It’s a really interesting time to be in the industry,” he added. “No-one’s sure how haulage and shipping patterns will evolve in the next few years, but it seems inevitable that they will and clients want suppliers that are fleet of foot and well-capitalised to respond to their changing needs.

“We’re putting ourselves in the box seat with this move and I’m delighted to be at the helm.”

The deal follows the administration of several Clugston businesses, although Clugston Distribution Services was unaffected and continued to trade as normal throughout. 

Alistair Clugston has extensive experience in the commercial vehicle market, having exported, trucks, tankers, trailers, spare parts and diagnostics all over the world for many years.

Demis Ohandjanian, speaking on behalf of the investment consortium, said: “This was an opportunity to support a very solid business with a fantastic heritage and a loyal and knowledgeable workforce.

“We’re delighted to be able to back Alistair’s ambitions and to set the business fair for another 100 years of trading.”