Tuesday 17th October 2017
Total Capital Partners funds MBO of Leeds and Manchester based Transport & Logistics specialist Walkers Transport
Wednesday 18 October 2017 – Total Capital Partners (“Total Capital”), today announced that it has funded the MBO of Walkers Transport (“Walkers”), a leading UK based transport and logistics specialist. The deal values the business at c£20 million.
Utilising its single source funding model, Total Capital is providing £13.5 million of equity and debt, and will take a 60% equity stake in Walkers. This is the second investment that Total Capital Partners has made this year and follows
the MBO of Weird Fish, a lifestyle leisurewear clothing brand, which completed in April 2017.
Based in the North of England with logistics centres in Leeds, Birstall and Manchester, Walkers Transport carries ambient, non-hazardous, palletised goods for a broad range of manufacturers, retailers, wholesalers and distributors. The Company comprises George Walker Transport Limited, George Walker Transport Manchester Limited and Northern Hub Limited.
Walkers was founded by current owner Nigel Jenkinson who will continue to be involved in the business as a non-executive director and consultant. As a result of the MBO, ownership will transfer to the management team led by Chief Executive Richard Simpson, with Nigel Jenkinson retaining a minority stake.
Walkers has seen strong growth over the last few years with turnover increasing from £18 million in 2014 to £25 million in 2016. The business currently employs c240 people.
With Total Capital’s support, the new management team plans to continue to grow and develop its competitive service offering in the M62 corridor. In
addition, it is expected that there may be opportunities to acquire further businesses where existing owner-managers are looking to retire.
According to the latest data from the Department for Transport, Road Transport accounted for 74% of all goods moved in the United Kingdom during 2015. The level of goods moved rose by some 13%, generating revenues of £26.1bn, in 2015. The industry is highly fragmented with only one company accounting for a market share greater than 5%, which provides a significant opportunity for consolidation.
The deal was led by Mark Buttler who joined Total Capital Partners as a Partner in November 2016. He commented: “Walkers is fantastic business with a market leading reputation and strong potential for further growth. We believe that the business has a compelling growth opportunity due to its focus on providing excellent customer service and track record of new customer wins. We look forward to working with Richard and his team to capitalise on these opportunities as the business continues to invest and expand its operations.”
Natalie Eastham, Managing Partner of Total Capital Partners, added: “We are delighted to be able to again demonstrate the Total Capital model at work,
this time for a fast-growing logistics business in the North of England. It testifies to the appeal that our flexible combined equity and debt funding approach has for management teams, providing an attractive alternative to the traditional leveraged private equity model for businesses and transactions requiring funding of £10-30 million.”
Richard Simpson, Chief Executive of Walkers Transport, commented: “We are really pleased to have Total Capital on board. Their funding model made sense for us and equally important, was the chemistry with the Total Capital team. We are excited about the future and we are looking forward to working
with Total Capital as we enter our next exciting phase of growth.”
CF – Vendor /Management: BHP Corporate Finance (Hamish Morrison and Matt Scott)
Vendor Legal: Clarion (Jonathan Simms, Sarah Harrison and Rachel Dean)
Financial DD: BDO LLP (Matt Copley and Andy Higgins)
Commercial and Operations DD: Graphene Partners (Sam Irving, Mike Wallis and Paul Miller)
Total Capital Legal: Walker Morris LLP (John Hamer and Ed Brown)
Notes to Editors
Total Capital Partners LLP
Total Capital Partners is an independent deal-by-deal GP, which was established in 2008 and provides combined equity and debt funding for SMEs in the UK.
Total Capital Partners provides single source financing for established SMEs with a funding requirement of up to £30.0m. By providing the total debt and equity requirements in an investment, this removes any reliance on third party leveraged finance, and furthermore, it reduces complexity in the deal process and in the ongoing investment period. The Total Capital approach offers enhanced flexibility and the financing is tailored to the specific needs of each business.
Total Capital’s approach delivers an attractive blend of returns to its investors comprising cash yield, contractual return and equity upside. In addition, the security in the structure and the swift return of capital makes for a highly attractive alternative to the typical leveraged model for investors.
Since 2013, Total Capital has arranged financing for investments on a deal-bydeal basis, with funds coming in the main from some of the UK’s leading institutional investors as well as family offices.
For further information:
Walkers Transport was formed in 1979 as a road haulage company. It is one of the UK’s leading 3PL specialist providing essential logistics, stock
management, pick, pack, collect and pallet delivery for 250+ importers, exporters, retail, wholesale, engineering and manufacturing clients.
Walkers operates the Northern Hub in Leeds for Palletways, providing an express gateway across the UK for ambient, non-hazardous pallet distribution.
With a vast fleet of versatile 7.5t to 44t trucks and trailers, and sites serving Leeds and Manchester, Walkers provide regular and contract pallet distribution with outstanding transport planning and warehouse support.