NorthEdge backs MBO at Liverpool logistics company in eight-figure deal

NorthEdge Capital has invested an eight-figure sum to acquire a majority stake in Liverpool-headquartered Abbey Logistics Group.

The Manchester-based private equity business made the move to support an MBO led by the logistics company’s chief executive, Steve Granite.

The deal, which is NorthEdge’s fourth of 2015, is the second investment from the firm’s recently raised £300m Fund II.

The funding will allow Abbey to continue to expand in an industry estimated to be worth around £55bn to the economy, targeting growth through new and existing customers.

Abbey will also explore a number of acquisition opportunities that its management team has been progressing alongside the MBO.

The Northedge-backed deal will provide a full exit for Abbey’s founding family. Moving forward, Steve Granite will continue to lead the business as chief executive, while Dave Coulson will retain his post of commercial director.

NorthEdge director Jon Pickering led the transaction with the help of portfolio director Ben Wildsmith and investment manager Dan Matkin. Upon completion of the deal, private equity-experienced chairman Ian Kelly will join the board.

Abbey’s board is set to be further strengthened with the appointment of an unnamed industry veteran, who will serve as non-executive director, and a logistics specialist as group chief financial officer.

Established by the Lucy family over 25 years ago, Abbey’s services centre on transporting bulk food products in powder and liquid tankers across the UK and Northern Europe.

The company has seen its turnover double during the last five years, from £20m to over £55m. It employs 450 staff across nine UK sites, including the Wirral, Knowsley, Manchester, Middlewich, Hull and London.

Abbey Logistics chief exec Steve Granite said: “We are delighted to have partnered with NorthEdge to complete the MBO and enable the Lucy family to exit the business.

“NorthEdge is the right partner for Abbey and we have been suitably impressed with the private equity firm since we first met earlier this year.”

He continued: “It is an exciting new chapter in the company’s life and we are very much looking forward to continuing the successful journey we have experienced to date.

“Our customers and employees will see the benefit as having a new partner on board will enable us to develop our business and continue growing from solid foundations. Through organic and acquisitive growth, Abbey will become the market leader in both the liquid and powder transportation markets in the UK.”

NorthEdge director Jon Pickering commented: “Abbey Logistics is led by an exceptional management team who has been with the business for more than 20 years.

“They fully understand the specialist logistics market they serve having carved out a niche by distributing bulk powders and liquids for the food ingredients markets.”

He added: “The company has demonstrated growth through a number of major contract wins and targeted acquisitions and this strategy will continue going forward with our support and follow on funding.”

Abbey received corporate finance advice from professional services firm EY during the transaction, while law firm Napthens provided legal advice.

NorthEdge was advised by a number of advisory firms, including BDO on corporate finance, Pinsent Masons on legal considerations, Graphene Partners on commercial due diligence and EY on financial due diligence.

Accountancy firm KPMG provided support on IT due diligence and tax structuring, while Quinn Partnership performed management due diligence and Vista Insurance Brokers Ltd provided insurance due diligence.