UK same day company CitySprint buys Woking courier firm

Same day courier company CitySprint has continued its acquisition trail in the UK, snapping up a family-run firm based in Woking. London-based CitySprint said today it has taken over all the same day, UK overnight and international services from Woking-based Eagle Express.

But, the acquired firm will remain in its current location in Woking, as it transitions over to the CitySprint brand this month.

CitySprint declined to give details of the size of its latest acquisition, but its takeover of a relatively small company is understood to be more about gaining a local presence and customer base than adding capacity.

Eagle Express Worldwide Couriers was founded by Liz and Ian McLean in 1998 and moved to its current site in July 2003. It provides same day delivery and an economy overnight service, as well as international deliveries and warehouse storage.

The company acquired Cargo+ (Midlands), a courier firm based in nearby Hersham, in November 2003.

Patrick Gallagher, the CitySprint chief executive, said his company’s latest acquisition was “another important step” in the firm’s ongoing growth strategy.

“We’re delighted to be increasing our presence in Woking and tapping into Eagle Express’s local knowledge,” he said.

Ian McLean, the Eagle Express co-founder, said his team would be working together with CitySprint to ensure there was a “seamless” integration.

“It is ‘business as usual’ for our customers, with the same teams and same couriers in place,” he said.

Acquisition strategy

CitySprint has a UK-wide network of 35 wholly-owned service centres and has a workforce of about 2,500 self-employed couriers. The firm states that it can reach more than 80% of mainland UK within 60 minutes.

The company has a courier division providing scheduled and unscheduled delivery of documents and small parcels, as well as a logistics division delivering parts and goods, including items for the healthcare and retail sectors. CitySprint also provides international and overnight UK delivery through a partnership with UPS.

CitySprint is aiming to generate GBP 100m in revenue in 2012, and acquisitions have been a key part of its growth strategy. The company has now bought seven courier firms since its management buyout in December 2010, which was backed by minority investor Dunedin, a private equity group.

Dunedin arranged a GBP 30m debt package back in May 2011 to support CitySprint’s acquisition efforts, with funding provided by RBS and Clydesdale.

CitySprint’s largest acquisition to date has been the operations of Lewis Day and Medical Services in November 2011, which handed the firm four service centres and about 400 couriers.