Target on road to £250m float
DIRECTORS at Warrington parcel firm Target Express are mulling a possible flotation of the business in a move that could value it up to £250m.
It is understood the firm’s venture capital investor 3i, which backed a management buyout in 2000, is now keen to exit the firm.
Target Express has appointed advisers Hawkpoint to look at its future and a possible sale is also believed to be high on the list of options.
Sources close to Target Express, confirmed that 3i, which owns 70 per cent of the business, is looking for an exit.
In a statement, chairman David Hoare said: “We are profitable and very cash generative so there is no need to do anything from a funding standpoint. But we always look at ways to increase our business and we will look at the whole range of options.”
Target Express turns over £130m and the business is estimated to be worth up to £250m. It currently employs 1,800 staff with 101 employees based at its Warrington HQ and depot, 51 people in Trafford Park and 90 more across the north west.
The company operates across 50 depots throughout the UK and Ireland and runs a 900-strong delivery fleet. It also outsources delivery services to up to 1,000 self-employed independent owner-drivers.
Established in 1982, the company was first bought in February 1998 by Legal and General Ventures for £174m. The sale left founders Raymond Griffiths, Iain Sharp and Peter Neumark with a significant stake in the firm.
In 2000, a further £200m MBO was backed by 3i, which invested £50m and the founders exited the firm with £110m between them.
Since then chief executive Paul Murray, who led the buyout team, has been replaced by Petar Cvetkovic.
Target built an enviable client base that includes 20 FTSE 100 companies
