25th May 2017
Leeds-based logistics firm Clipper has acquired Tesam Distribution for £11.75m in a deal that will see the group expand its operations into the south. Dow Schofield Watts Transaction Services team advised on the deal.
Tesam supplies warehousing and distribution services to the retail sector, operating from three sites in and around Peterborough, and employs around 250 people. Established in 1984, it now has 1.1 million sq ft of space at its disposal, and turned over £19.6m in the year to 30 June 2016.
Clipper has bought the company from managing director and principal owner Stephen Smith who will become a consultant to the group. The other members of the management team will remain as full time employees. The acquisition is being funded in cash from Clipper’s existing cash and bank facilities.
Clipper has been growing its business since its IPO in 2014. Steve Parkin, executive chairman of Clipper, said: “Tesam is a successful and robustly profitable and cash generative business which we have known for some time.
“The acquisition, coupled with our planned investment in additional capacity, will enable us to offer existing and prospective customers of both Clipper and Tesam greater operational flexibility, and will provide further headroom for the delivery of our strong business pipeline.”
Rob McCarthy, Partner at Dow Schofield Watts’ transaction services team in Leeds provided financial due diligence for Clipper. He said: “We are delighted to have supported Clipper, a high profile and respected Leeds based business, on its latest acquisition.”