Eddie Stobart, leading supply chain, transport and logistics company, today announces that it has entered into an agreement to acquire the entire issued share capital of TPN, a leading provider of pallet distribution services around the UK and Ireland, comprising 106 regional hauliers (members), for a total consideration of up to £52.8 million, on a cash and debt free basis.
Alex Laffey, CEO at Eddie Stobart said: “In line with our strategy, we are delighted to be able to invest in TPN as this significantly enhances the skills and capabilities of Eddie Stobart in a space that we currently do not operate in. Furthermore, it strengthens our position as a leading provider of end-to-end supply chain solutions.
“The TPN team, led by Mark Duggan, Managing Director, have continued to deliver strong growth since the business was founded in 2000, resulting in an excellent and strong service performance for customers. The members of TPN will provide a competitive advantage as we will be partnering and working with companies that are experts in their own regions and more importantly, have substantial experience of delivering final mile pallet solutions.
During my discussions with TPN, I have been extremely impressed with the enthusiasm and expertise of the leadership team and members I’ve met so far. I am looking forward to working with them and I’m confident we will identify opportunities that will provide mutual benefit and grow both our networks.”
Mark Duggan, Managing Director, TPN: ‘’We were very pleased to be approached by Eddie Stobart, which has extensive experience within the logistics industry and the team have built a market leading end-to-end supply chain business, across the UK and in Europe.
“Most importantly for us, Eddie Stobart has an ethos that fits with ours and share our long-term vision. Their investment has enabled the smooth exit of our previous investors and provides us with some immediate operational synergies for our member network. We have ambitious plans and this new partnership will help us achieve and deliver long-term sustainable growth.”
This acquisition significantly enhances Eddie Stobart’s existing skills and capabilities, including meeting customer requirements for smaller load deliveries. It also positions Eddie Stobart in an attractive segment, which has grown at a significantly greater rate than the wider logistics market over the last three years. This combination will provide benefits to both businesses and to TPN’s members, through cross-selling to existing Eddie Stobart customers, and collaboratively deploying Eddie Stobart’s enhanced operating model into Europe.
The acquisition provides an exit for TPN’s institutional backers LDC, the private equity arm of Lloyds Banking Group.