HMT undertook financial due diligence of Northampton-based logistics group Dalepak Ltd (“Dalepak”) in respect of the MBO funded by Sovereign Capital Partners (“Sovereign”) and Crescent Capital (“Crescent”).
Founded in 1991, Dalepak delivers a portfolio of seamlessly integrated warehousing, distribution, packing, internet fulfilment and freight forwarding services that can be tailored around individual customer requirements. Operating from four warehouse centres across Northampton, Dalepak is currently the second fastest growing business in Northamptonshire.
The management buyout was led by private equity firm Sovereign with senior debt provided by Crescent and further facilities made available by Royal Bank of Scotland.
The MBO team comprised Scott McGinley (COO) and Scott Merrick (IT Director) with David Tracey (CEO), Nick Frogbrook (CFO) and Stewart Oades (Chairman) joining the business to enable the existing shareholders to retire.
HMT undertook financial due diligence with commercial due diligence undertaken by sector specialists, Apex Insight. This is the third MBO that HMT have recently advised on in the logistics sector following the acquisitions of Whistl and ILG.
Jeremy Morgan, Partner at Sovereign commented,
“HMT did an excellent job in helping us understand this high growth business against a backdrop of a challenging timetable.”
“We are delighted to have supported Sovereign and the management team on the acquisition of Dalepak. The strong and profitable growth historically enjoyed by the business and “blue-chip” customer base provides a solid platform to allow the new management team to realise their exciting growth plans.”