Food ingredients transportation group Abbey Logistics has undergone a management buyout backed by private equity firm NorthEdge.
It is fourth deal for NorthEdge this year and the second investment out of the recently raised £300m fund.
Liverpool-headquartered Abbey was set up more than 25 years ago by the Lucy family specialising in the liquid food ingredients transportation market. It has recently diversified into the bulk powder market, palletised transport and warehousing under current CEO Steve Granite, who lead the MBO.
Abbey, which has a number of pan-European blue-chip customers in the food ingredients market, has more than doubled revenues over the past five years from £20m to £55m in the current financial year following a number of acquisitions and large contract wins.
The business employs more than 450 staff and operates from nine sites across the UK.
Funding by NorthEdge, which focuses on northern investments from offices in Manchester and Leeds, will support Abbey’s continued expansion, with growth target from new and existing customers and further acquisitions.
The deal will provide a full exit for the founding family and the business will continue to be led by Steve Granite as CEO and Dave Coulson as commercial director.
“We are delighted to have partnered with Northedge Capital to complete the MBO and enable the Lucy family to exit the business realising their well -earned value,” Granite said.
“Our customers and employees will benefit from the transaction as the new investment enables us to develop our business and continue growing from solid foundations. Through both organic and acquisitive growth Abbey will become the market leader in both the liquid and powder transportation markets over the coming years.”
Ian Kelly, who has private equity experience, joins the board as chairman at completion, with appointments of chief financial officer and a non-executive director to follow.
Jon Pickering, investment director at NorthEdge Capital, added: “Abbey Logistics is led by an exceptional management team who have 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.
“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.”
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