DX Group agrees capital refinancing with £15m equity injection and change of management

UK-based DX Group has announced the agreement of a capital refinancing and a management buy-in led by Petar Cvetkovic and David Hoare. As part of the deal, DX Group’s main shareholder, the private equity house Candover Partners Limited, is to inject fresh equity of £15m.

Petar Cvetkovic and David Hoare are respectively the former CEO and chairman of Target Express, the express delivery business they successfully and profitably grew into an industry leading carrier.

Current chairman, David Mitchell, will hand over the reins to David Hoare. CEO, John Coghlan, will resume his previous position of non-executive director and hand over to Petar Cvetkovic.

Coghlan said: “Petar and David bring to the management team a huge amount of experience and we are delighted to welcome them to the DX Group board.

“DX Group has weathered an unprecedentedly tough trading period over the last 18 months, but has remained profitable and cash-generative. Now, with the support of Candover and our banking group, we have a strengthened balance sheet and the freedom to push ahead.”

Cvetkovic said: “David and I are very pleased to join the DX Group, a company which we’ve consistently held in high regard. The business has a solid, profitable base and, in the coming months and years, we will seek to build upon its strong reputation in the market place.”

Mark Dickinson, director of Candover, said: “We are extremely grateful to David Mitchell, John Coghlan and their team for steering DX through a very difficult economic period and maintaining both market share and profitability. The refinancing is a very positive outcome for both DX Group and Candover, and we’re delighted to back the management with further fresh capital. In welcoming David and Petar to the board, DX is now well placed to exploit the long term opportunities present in this sector.”