Palletways announces new group CEO and shareholders

PALLETWAYS ANNOUNCES NEW GROUP CEO AND SHAREHOLDERS
Date Added: 02nd August 2004

James Wilson, former Chief Executive of TNT in Australia and New Zealand, has been appointed as the new Chief Executive of Palletways Group Ltd, the market leader in the overnight distribution of palletised freight. Wilson will be responsible for the Group’s strategy across the UK and Europe, which will focus on accelerating growth through increasing domestic market share and developing the first pan-European pallet network.

Wilson has also invested in Palletways alongside the entry of a new shareholder, Phoenix Equity Partners, one of the UK’s leading private equity firms, which provides an exit for 3i, who invested in a minority stake in the original MBO in 2002. Existing Palletways management team members Julian Maturi, Jon Hyatt, and Craig Hibbert retain shareholdings in the company. Bank of Scotland Corporate provided the debt funding package.

Says Craig Hibbert, Group Development Director at Palletways: “The appointment of James Wilson, who has a proven track record in growing logistics businesses, is part of our strategy to fully exploit the UK market for overnight palletised freight distribution and to become a dominant force in Europe. The Board believes he can bring an extra dimension to Palletways, both through his knowledge of working across the UK and Europe and his senior management experience in major logistics organisations.

“These developments ensure continuity of the business and support expansion of the business in the UK and Europe.

Added Wilson: “I am looking forward to the exciting challenge that lies ahead. Palletways has proved itself to be the most advanced pallet network in the industry and I look forward to bringing my expertise to the company to build on the phenomenal success to date.

“I personally believe that there is enormous market growth potential for pallet networks. Palletways will continue to develop its business by focussing on being the industry benchmark for service delivery and providing customers with innovative and added value solutions which help them to become more competitive in their marketplaces.”

Richard Daw, Director at Phoenix Equity Partners, said: “Palletways is the market leader in what is arguably the fastest growing area of the logistics sector. We share the belief of the other shareholders that the UK market offers significant potential for further growth, whilst Europe represents an untapped opportunity.

“Palletways is ideally placed to build on its phenomenal success to date and with our investment we hope to play a key role in helping the company achieve its growth targets.”

Andy Oates, Associate Director of Integrated & Acquisition Finance at Bank of Scotland Corporate, said: “Palletways has been a customer of the bank since we funded the original buy-out in 2002. Given the success story that Palletways has been, we are delighted to continue our excellent relationship and look forward to building on this as Palletways continues its growth in the UK market, whilst taking advantage of the huge potential that Europe holds for Palletways and all of its members.”