CitySprint secures funding from LDC
Lloyds Development Capital (LDC) has bought a stake in UK-based same-day delivery company CitySprint in a deal which values the business at £175m. LDC joins existing shareholder Dunedin, which has retained an equity stake in the business. The CitySprint management team remains the major shareholder.
(Last year, LDC – the private equity arm of Lloyds Bank – was in the running to take a 60% stake in Whistl, but decided not to because of concerns over about the “ongoing changes in postal market dynamics”.)
CitySprint told Post&Parcel today that the transaction provides significant new capital for the next stage in CitySprint’s journey and will “cement its position in the growing £1.7bn same day market”.
Meanwile, CitySprint has also announced the creation its new technology ‘hothouse’ division – called LastMileLink Technologies – which aims to accelerate the development of innovative new products for CitySprint and improve the delivery platform infrastructure.
Patrick Gallagher, CEO of CitySprint, said: “We have a really strong partnership with Dunedin and LDC is joining us, as a key strategic investor, at a very exciting time in our business as we capitalise on our first mover advantage in the same day market.
“We are perfectly placed to take advantage of the increasing demand for same day and specified hour fulfilment. This is being driven by consumers seeking confidence and convenience and from a growing number of retailers looking to out manoeuvre their competitors.
“But we can never stand still. In recent years we have invested significantly in our technology to support our leadership position, and this will continue to be an important part of our growth strategy. We will also continue to attract excellent people throughout our business, who are the cornerstone of our success.”
CitySprint, whose UK same day network encompasses 40 service centres and more than 3,000 couriers, generated £146m in revenue in 2015. The company also launched its “On the dot” retail and consumer delivery service last year, which allows shoppers to choose a one-hour delivery window.
