DX Group receives possible all-cash offer from private equity firm HIG
Gatemore Capital Management LLP , a fund manager controlling 19% of the outstanding shares in DX confirms its support for the non-binding and conditional proposal from H.I.G. European Capital Partners LLP regarding a possible all cash offer for the Company at a price of 48.5 pence per share.
As has been announced by H.I.G., Gatemore has signed a Letter of Intent to support the proposal which remains in effect.
Gatemore has been the largest shareholder in DX since 2017 when it led the rescue of the Company with a £24 million convertible note financing, saving over 3,000 jobs. This followed a public campaign by Gatemore to replace the Board of Directors, which ended with the appointment of Lloyd Dunn as CEO and three other independent board members. Under this new leadership, the Company achieved a remarkable turnaround whereby DX transformed into the market leader in irregular dimension and weight (IDW) freight and moved from losing over £10 million in EBIT per year to making over £30 million in EBIT per year. Revenues continue to grow at double digit rates, with healthy operating profits and a strong net cash position.
Liad Meidar, Managing Partner at Gatemore Capital Management commented: “As has been announced, we are supportive of the possible offer for DX by H.I.G., which is a testament to the exceptional turnaround that DX has experienced since we invested in the business. We believe H.I.G. is a credible backer for this company, which has built a market-leading position in the UK and continues to deliver strong growth, going from strength to strength.
