Business Post Group acquires Weavers
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”.
