Initial offers for Hays logistics side
Potential buyers have submitted initial bids for Hays’ logistics business, marking the first milestone in new chief executive Colin Matthews’ break-up plan for the support services groups.
The majority of first round bids were submitted on Friday although some could still come in this week. Both trade and financial buyers are believed to have put in offers for the division, which analysts value at about Pounds 200m-Pounds 300m.
Montagu Private Equity, formerly HSBC Private Equity, is thought to be among the first-round bidders. Other obvious financial buyers include 3i, Charterhouse Development Capital and Cinven.
Exel, the freight and logistics group, has signalled its interest in Hays’ logistics division, although it is understood to be keen not to overpay for any potential acquisition. Rival Tibbett & Britten is also believed to be interested.
Analysts have suggested that trade interest could also come from TPG, the Dutch Post Office, which is believed to have cast its eye over the division, and Deutsche Post. However, it was not clear whether they were among the first round bidders. Deutsche Post recently acquired Securicor’s 50 per cent share of a distribution joint venture with the security services group.
A sales memoranda for Hays’ business process outsourcing operations, thought to be worth between Pounds 30m and Pounds 50m is also circulating.
Sales documentation for Hays’ information management business is due to be sent to possible buyers within the next few weeks.
This division, valued by analysts at up to Pounds 160m is also expected to attract strong interest from the private equity industry. However, interested parties also expect competition from trade buyers, with possible candidates including Iron Mountain and Brambles, which could combine Hays’ Information Management with its own Recall business.
Mr Matthews said last month he intended to dismantle the business services conglomerate built up by Hays’ founder Ronnie Frost. As well as the divisions currently up for sale, he plans to dispose of Hays’ mail operations in order to focus the group on recruitment.
Copyright © 2003: Financial Times Group
