12th October 2021
Mercia backs UK Mail Digital in MBO from parent company DHL Parcel UK
The Hybrid market represents a huge opportunity, with under 20% of the 2bn item franked mail market currently served by hybrid providers. The existing management team will continue to drive UKMD forward as a stand-alone business.
The transaction will be a seamless transition for customers and suppliers – with a strong supportive relationship with DHL remaining in place, there will be no change for customers to any existing arrangements and services.
Further investment in market-leading product and service developments will follow the completion of the deal with further updates provided over coming weeks.
Andy Barber said “I am delighted that Mercia Asset Management have backed me and my great team to conclude this deal along with the financial support of Thincats Limited. Owing to the excellent assistance from an expert set of advisors we now have the chance to take this business forward to new levels and have some great plans which will unfold over the course of the next few months”.
Jill Williams, Investment Director Mercia Asset Management “We were attracted by the growth of the business to date, the interesting market environment, and the opportunity to back an experienced and committed MBO team focused on accelerating and delivering further growth. This is an important management buyout transaction for Mercia’s Private Equity team as it is our first in the Midlands, which is a key region for growth in the UK. I look forward to joining the Board.
The new business is supported by Mercia Asset Management PLC’s Private Equity business who will take a stake in the company with finance facilities provided by Thincats. Macintyre Hudson advised the management team from the outset from the structuring of the transaction through to completion. Hill Dickinson provided buy-side legal support throughout the transaction.