Palletforce, a UK provider of express palletized distribution through a network of hauliers, has reached agreement on the terms of an acquisition by EmergeVest Fund B LP, a private equity firm that also owns Allport Cargo Services and NFT Distribution, to acquire the entire shareholding of Palletforce, valuing the company at £30m.
The acquisition is expected to allow Palletforce to benefit from continued investment in its distribution services and see it build on its relationship with its network’s 88 member companies.
With the sale of Palletforce at a substantial premium to the last traded share price in June 2015, each shareholding member is set to benefit financially from the company’s growth in revenue and profits. Indeed the company stated that its volumes increased by 20% in the first six months of 2015 as the Palletforce network collected and delivered nearly 1.5m pallets.
It is anticipated that the partnership with EmergeVest, which has logistics interests in the UK and China, will also create international commercial opportunities for Palletforce and lead to the emergence of the company onto the global stage.
Working together with the present executive management team, EmergeVest has committed to retain and develop the existing business model and to uphold the partnership values with Palletforce network members.
Michael Conroy, Chief Executive Officer of Palletforce said, “The offer from EmergeVest will allow Palletforce to continue its class-leading quality service with a real focus on investing in the strong relationship we have with our network members. The move will allow us to write a new chapter in the company’s history as, in EmergeVest, I believe we have the ideal partner to help us open up exciting new market and commercial opportunities, especially across Asia. Our vision is for Palletforce to become the world’s leading pallet network and today’s news takes us one step closer to that goal.”
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