Transport and logistics group Eddie Stobart is to acquire a pallet distribution business for more than £50m, providing an exit for private equity firm LDC. The deal will be funded by a share placing which is expected to raise £30m.
The Pallet Network Group (TPN) is headquartered in Minworth and provides services across the UK and Ireland. It turned over £119.5m in the period from 15 December 2015 to 31 March 2017 and employs more than 230 staff.
Eddie Stobart will pay a total of £52.8m for the provider of pallet distribution services, with £44.1m payable in cash upon completion. The remainder will be payable over a two-year period.
To part-fund the transaction Eddie Stobart will place 21.3 million shares to raise £30m before expenses.