Growth / Acquisition

Apr 19, 2017

Acquisition of Key Competitor and Liquidation of the Assets

  • Strategic acquisition of a UK based logistics operation with key accounts in the Channel Islands
  • Investment £1m from business owners
  • Closure of the site and liquidation of the operation, transferring all trade to the principle business

Although a relatively small company, the target held some strategic accounts that offered significant benefits to the principal company. Integration of the operation was not economically viable and the decision to close the operation was made at the point of take-over. 80 staff were released following a full consultation process. The site was closed and all the material assets were disposed with minimal losses within 6 months.

Growth Through Acquisition and Integration

  • Sourced and negotiated initial acquisition of 5 businesses
  • Planned integration of additional businesses into the Group of companies
  • Reinvestment of profits for 1st 5 years

Having taken over the first two businesses, the key challenge was setting some common standards of care, administration and operational processes. Having developed an effective blueprint (including recruitment and training) this was rolled out to every business acquisition allowing a rapid increase in efficiency and profitability of each new business.

Government Funding in the USA

  • Sourced and awarded $8m of state funding for initial employment generation (and 5 years of no social taxes)

With a planned move from a Mexican factory to a new purpose built state of the art production facility in Ohio, an application for state funding to support employment generation was made and awarded. New sources of revenue generation were also developed for the Mexico factory resulting in its maintenance rather than its closure.

Property Investment - New Build and Office Refurbishment Projects

  • Commercial Chilled Warehouse Development and Project Management requiring investment of £4m
  • Office Refurbishment Project with tenants in-situ requiring £2m investment

In preparation for a major disposal of all the Group assets, the strategic decision to build a new commercial warehouse alongside the existing logistics operating site required £4m investment and a stringent timetable. Despite finding a WWII UXB in the middle of the site the project was still delivered on time and within budget. The increase in the value of the business gave a 200% ROI.

Additional property assets, which were originally constructed in the 1960’s required an overhaul to make them 21st Century ready. Requiring an investment of £2m the building was fully refurbished whilst keeping the tenants in situ and allowed and increase if rent by 25%.

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