3i and Target Express Deliver £200 Million Management Buy-Out
Target Express, one of the UK’s leading parcel companies, has been acquired by its management team, in a £200 million secondary management buy-out, led by 3i, Europe’s leading venture capital company. 3i, advised by KPMG Corporate Finance, will be investing around £50 million, to back the buyout, from current owners, Legal & General Ventures and the founder shareholders. This represents one of the largest secondary buyouts of its kind in the UK. The buy-out will also be funded by Fuji Bank and Gresham Trust.
Target Express, which is forecast to achieve a turnover of over £110 million this year, operates express delivery of business to business consignments to destinations around the UK. It also offers a delivery service to other European countries through an alliance, NetExpress Europe. The company’s operations are conducted through a network of 41 depots in the UK and Ireland.
The company has focused its business on high growth sectors such as IT, pharmaceuticals and electronics, concentrating on providing high service levels and excellent operational efficiencies. The 1999 Triangle Survey, the independent industry standard benchmark, voted Target Express top all-round performer on reliability, prompt deliver, customer satisfaction and value for money.
Paul Murray, Managing Director leads the buy-out team, and is joined by Mark Cotterill, Finance Director; Martin Kenyon, Operations Director and Brian Jenkins, Sales Director.
Richard Campin, who led the 3i team on the deal said, “The management team led by Paul Murray, has consistently delivered outstanding growth at a rate of about 20% per year. Their highly customer- focused approach, and the benefits that they have brought to the business through harnessing developments particularly in the area of technology, are key to this success. We anticipate that in a market which is set to grow, both in the UK and internationally, Target Express is well placed to continue delivering substantial growth and value to the business to business parcel delivery market.
Paul Murray, Managing Director, Target Express commented, ” I am delighted that Target Express will continue to have excellent financial backing. The investment made by 3i is a reflection of the confidence they have in the whole team at Target and our future growth potential, and will enable us to continue providing a quality service to high growth sectors, developing the UK and Ireland depot network and growing a strong European capability.
James Dow, Partner, KPMG Corporate Finance, commented, “We have been working very closely with 3i for months on this transaction and our in-depth role reflects KPMG’s significant credentials in the £100 million-plus buy-out market.”
Notes:
3i Group plc is Europe’s leading venture capital company. The group invests in ambitious, growing businesses in all sectors. It provides funding for growth, recovery, management buy-outs and management buy-ins. Almost 1,000 companies from 3i’s portfolio have achieved a stock market listing.
3i has 30 offices throughout Europe, two in Asia and two in the USA. Overall, 3i has invested almost £11 billion in over 13,200 businesses and currently has a portfolio of investments in almost 3,000 companies, with a combined valuation of more than £4.7 billion.
KPMG Corporate Finance is one of the most experienced and largest specialist buy-out and buy-in advisers in the UK. It has experience of advising management teams and private equity institutions across all sectors.
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