The logistics and distribution industry is booming, and it is in no small part down to the incredible acceleration of the UK’s e-commerce industry, which is the fastest growing retail market in Europe.
UK online retail sales smashed the £52billion mark in 2015, recording growth of 16.2%*, largely thanks to the advances in digital and mobile technology enabling time-poor consumers to embrace the convenience that online shopping provides. For everything from white ticket items to the weekly shop and indulgent impulse buys, consumers want their online purchases to arrive at a time that suits them.
This consumer spending power has created an unprecedented same-day and next-day delivery culture that is also emerging across industry, from healthcare and automotive to freight distribution and forward thinking distribution and logistics firms are quickly capitalising on the vast opportunities to drive long-term sustainable growth for their businesses.
Many organisations are growing with private equity support, and here we showcase some of the country’s leading logistic businesses where LDC is supporting their Management Teams to achieve ongoing growth and success.
Please see below some businesses that we are already helping in this sector:-
LDC backed the £175m secondary buyout of CitySprint, the UK’s leading technology-driven same day distribution company, in February 2016.
The investment cements CitySprint’s first mover advantage in the £1.7billion same day market, where it is the UK market leader, and enables the company to fast-track the development of its innovative final mile delivery offering through its newly-created accelerator division, LastMileLink Technologies. The transaction will also back the ongoing roll-out of its “On the dot” retail and consumer brand, which is a delivery service that allows shoppers to choose a one hour delivery window.
In April 2016 LDC backed the £17m management buyout of Panther Logistics, the UK’s largest independent 2-man next day home delivery provider.
Panther specialises in two-man and one-man assisted delivery services for major brands and retailers, including Dunelm, Silent Night and Bosch Siemens Group. It provides customers with next day deliveries and UK-wide coverage via a network of eight strategically located regional hubs and employs 300 people, expanding to over 800 with additional temporary staff during peak periods.
Following the investment, Panther plans to continue to invest in its operations and develop new service innovations to support its customers.
LDC has re-invested in The Pallet Network (TPN), a leading palletised freight distributor. During the initial investment, LDC supported an acquisition and the opening of a purpose built operational hub, which helped more than double turnover to £72million. TPN is a great example of LDC continuing to back management teams to create shareholder value over a longer period.
If you’d like to explore how private equity can help you succeed, please get in touch.
*Centre for Retail Research – Online Retailing: Britain, Europe, US and Canada 2016