Acquisition of express pallet network
Business Post Group plc, one of the UK’s leading express delivery companies,
announces the acquisition of Weaver (Four Oaks) Limited, trading as Weaver
Pallet Express (‘Weaver’), a Midlands-based express palletised goods delivery
business.
On a pro forma basis in the 12 months ended 31 March 2003, Weaver achieved
turnover of £16.2m and profit before interest and tax of £1.2m. Weaver’s pro
forma debt-free net assets at 31 March 2003 were £2.1m.
Weaver provides a nationwide express pallet delivery service through a
partnership network of 70 independent haulage businesses throughout the UK. Run
from a national hub at Fradley Park, Lichfield, Weaver handles more than 3,000
pallets a day and is estimated to be the UK’s fourth largest pallet network
company. The UK pallet network market is experiencing growth of more than 30%
p.a.
The consideration consists of an initial amount of £9.0m and a deferred amount
of up to £3.5m, dependent on the performance of Weaver in the year ending 31
March 2004. The deferred consideration will consist of cash and shares in equal
proportions, and the maximum deferred consideration will be payable if profit
before interest and tax reaches £2.0m. The acquisition is expected to be
earnings enhancing in the current financial year. The management
team will remain with the business and the vendors have undertaken to retain the
consideration shares for a period of at least two years.
Commenting on the acquisition, Business Post Chairman Peter Kane said “the
acquisition of Weaver represents further progress in the implementation of our
strategy by bringing critical mass to our own pallets business, UK Pallets. This
now gives us strong representation in all of our chosen markets for time-definite deliveries”.
Business Post Chief Executive Paul Carvell added “the pallet network market is a
relatively new but rapidly growing part of the express delivery sector. We are
excited about working with Weaver’s management to introduce the skills and
experience we have developed over 30 years in the parcel market to one of the
major players in pallet deliveries. Over the next few months, Weaver’s business
will be rebranded as UK Pallets and will provide further cross-selling
opportunities across the Group’s enlarged customer base”.
