Logistics giant takes a bite of £33m Bradford transportation company
LOGISTICS giant DB Schenker is set to buy a majority share in transportation company Redhead International.
The world’s second largest logistics and transportation services provider, DB Schenker Logistics is buying a 75% stake in the company, which was established in Bradford in 1978.
It is planning on taking over the remaining 25% after four years.
The businesses will be merged in a reverse integration, which continues to trade as Redhead International which will be spearheaded by the current management team.
Together, the companies will have more than 300 vehicles operating out of five regional depots, including a recently acquired site in the Midlands. the company also has sites in Dublin and Belfast.
Redhead International, established in 1978, employs more than 230 people internationally and has regular scheduled services to over 40 countries in Western, Eastern and Southern Europe, Scandinavia, North Africa, the Middle East and the CIS countries.
Turnover for the year to 31 March 2015 was more than £33.2m, up from £32.7m the year before and pre-tax profit remained relatively static at £1.45m, just slightly down from the £1.50m in profits the year before.
Ewald Kaiser, board member for land transport of Schenker AG said: ” This acquisition underscores our strategy to strengthen and grow our pan-European network. It improves our access to the UK market and the combined resources will facilitate our strategic growth plans.”
Tony Suggit, managing director at Redhead International said: “The new venture brings the best of both companies together and will further strengthen the infrastructure of our UK and European network.”
Berlin-headquartered logistics firm DB Schenker has 235,000 staff and operates in more than 130 countries across the globe.
Redhead’s shareholders are being advised by a team from law firm Gordons led by James Fawcett and Duncan Firman, with corporate finance advice from their accountants Armstrong Watson, led by Phil Bailey.
