Tuffnells in secondary buyout
Bank of Scotland has acquired national express parcels carrier, Tuffnells Parcel Express, in a GBP33m secondary buyout transaction. The buyout provides an exit for existing private equity investors The Phildrew Ventures third fund and 3i, which acquired the business in 1995 for GBP26.2m. 3i, which invested GBP7.5m in the buyout, generated an IRR of over 100% despite the 10-year life of the investment.
As part of the transaction the Bank of Scotland has taken a significant minority equity stake with the management team retaining an enhanced majority shareholding in the business.
Lloyd Dunn, CEO, and finance director Bill Rogers will form the company’s executive board alongside two non-executive directors. The transaction was structured and arranged for Bank of Scotland Corporate by Mike Gillespie and Donald Fowler.
