Merger to create £1bn turnover supply chain management company
Global supply chain technology and solution services provider, Ligentia, has agreed to combine with VGL Solid Group (VGL), a freight and logistics provider in Poland.
The deal, which is subject to regulatory approval, is designed to establish Ligentia Group – which has its main UK base in Leeds – as a major international supply chain management company with revenues over £1bn.
Ligentia and VGL have an existing long-standing relationship through a joint venture partnership, delivering customers supply chain solutions for over 10 years.
The newly combined organisation will provide an enhanced end-to-end service offering, bringing together Ligentia’s international network, proprietary technology and upstream services with VGL’s expertise and logistics, European road freight and ocean services.
Upon completion of the deal, Ligentia and VGL will form a new organisation of more than 1,300 global supply chain experts.
Nick Jones, Group CEO, said: “We have enjoyed a fantastic relationship with VGL for many years and this is a very exciting milestone in our journey together.
“Both businesses thrive because of our aligned values and commitment to centre customers at the heart of our organisations which means we invest, develop and commit resources to make sure we achieve a great experience for our customers.
“The forward-looking business will be even better placed to enhance our combined technology offering, provide new services and connect a diverse team ready to deliver our next phase of growth.”
The deal is being financed with the support of Ligentia’s existing funders, Partners Group and Santander.
Sebastien Leusch and Chris Candfield, Equistone investment directors, said: “We have been hugely impressed by Ligentia’s clear ambition to scale and build a diverse, customer-focused and responsive global supply chain management solutions business.
“The team have delivered exceptional growth over the last two years, including the launch of its US business.
“We are proud to support the Board in this acquisition which will enable the business to expand into new geographies and sectors, continue to innovate its technology and strengthen its position in a dynamic and buoyant market.”
Ligentia expects to complete the transaction in quarter three after regulatory approvals have been received.
It has been supported in this transaction by Rothschild, DC Advisory, Squire Patton Boggs, KPMG, Roland Berger and Addleshaw Goddard. VGL Solid Group has been backed by PwC, GKW, Skadden and KPMG.
