58
DEALMAKERS
IN ASSOCIATION WITH:
ON THE ROAD TO GROWTH
By Ged Henderson
Lancashire’s logistics sector has witnessed a series of deals in recent weeks as a number of players look to drive forward operations and expand their horizons.
As the sector looks to emerge from the challenges of the pandemic and Brexit, industry watchers are predicting more businesses will look to take the route to growth and diversification through acquisition.
M&A activity has been rising for some time. A report by accountancy firm BDO revealed that the annual volume of completed logistics and supply chain deals in 2021 hit a record high - with an overall disclosed value of £2.7bn.
WH Bowker is one of those businesses that has looked to strengthen its business through acquisition and with further growth firmly in its sights.
The Bamber Bridge based company is already one of the UK largest private operators, specialising in chemical, pharmaceutical, and food grade logistics.
It has acquired two operations in Greater Manchester for an undisclosed sum. The deal for Rochdale firms James Nuttal (Transport) and Queensway Commercials adds 48 vehicles to its commercial fleet.
And it also expands its infrastructure in the form of Queensway’s DVSA authorised testing facility, which carries out MOTs and tachograph repairs.
Bill Bowker, director of the family run firm, which has been in business for more than a century,
says the opportunity for growth played a major part in the deal.
He says: “It is a successful family-owned business and shares the same cultural ethos as our own.
“We are extremely confident the venture will strengthen our UK and European warehouse and distribution business, providing further opportunities.”
The acquisition means that Bowker’s UK and European fleet now numbers more than 225 vehicles and 450 trailers. The business also has 1.2 million sq ft of warehousing across 10 strategically placed locations across the UK.
Could there be more acquisitions further down the road? Bill says: “We continue to examine all options which meet our business strategy. Any future acquisition will continue to meet all our criteria and will add value to our overall business.”
Looking at the wider industry, he says: “Within the industry there is huge demand for new equipment, in many case logistics operators face lengthy lead times from vehicle manufacturers due to delays within supply chains. In some scenarios, obtaining additional equipment by acquisition is a viable option to consider.”
He adds: “Over the last two years, manufacturers’ supply chains have been under pressure. After challenging trading periods there tends to be an element of consolidation and the logistics sector is no different.
“We have seen several large multinational operators merge or acquire other large operators. Clearly there is an appetite from investors to strengthen their position in the sector, growing by strategic acquisition, expanding both warehousing and vehicle capacity.”
Altham based North West Logistics has also hit the acquisition trail, with the support of a seven- figure funding package from HSBC UK.
With more than 60 vehicles in operation, supported by 100,000 sq ft of warehousing space, the business has customers across the UK, ranging from SMEs to large multi-nationals.
It has now acquired Proserve Logistics, a Wrexham-based operation with more than 400,000 sq ft of warehousing space, supported by a fleet of 15 vehicles.
North West Logistics says the deal, again for an undisclosed sum, will strengthen its operations and expand its geographical presence in North Wales and the surrounding regions.
As a result of the deal, and the inclusion of an expanded customer base, the combined revenue of the new group will increase to £17m, and over the next two to three years that figure is expected to increase further.
Stephen Dunn, managing director at North West Logistics, says it “marks an exciting next chapter for our company.”
He adds: “This acquisition allows us to join together with a well-established, reliable business, with a very experienced management
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72
