Case Studies
Trucking good deal keeps Yorkshire firm motoring
One of Yorkshire's largest privately owned logistics and distribution companies has been bought by its management for an undisclosed sum.
Leeds-based Macfarlane Transport Ltd carries for the manufacturing, grocery, home improvement, mail order, printing, publishing and packing industries.
The new management team includes joint managing directors Robert Fox and Andrew Forrest, and finance director Paul Kennedy. The deal was co-funded by the Leeds offices of Lloyds TSB Commercial Finance, which provided asset-based lending facilities, and Lloyds TSB Corporate.
Macfarlane Transport was founded in 1978 by brothers Ian and Gordon Macfarlane who started out with a second-hand truck purchased from the local classifieds.
Since then it has steadily grown to a £22 million turnover business, which employs 280 people and operates a 150 strong fleet of vehicles.
Macfarlane Transport has capitalised on its strength in the print sector by helping to develop innovative services such as FASTMAG, the UK's leading magazine delivery service. The system handles over 150,000 tonnes of material a year, which equates to a 40 per cent share of the UK magazine distribution market.
The company moved to a purpose built 13-acre distribution centre in June 2002 and has fitted its entire fleet with the latest satellite tracking and communication systems.
Robert Fox, joint managing Director of Macfarlane Transport, said: "Macfarlane is one of the most recognisable haulage names on the road and has built a reputation in the distribution market for effectively driving cost efficiencies for customers.
"Our strategy of steady organic growth will build upon our strong brand and we plan to continue investing in the systems and people that are key in providing strong customer service.
"The combined funding package put in place by the two divisions of Lloyds TSB will ensure that we can capitalise fully on the growth in the outsourced transport services market."
Nick Robson, regional director of Lloyds TSB Commercial Finance, said: "Macfarlane Transport have built their excellent reputation through investing in a modern, reliable fleet, embracing the latest technology and introducing systems that save customers time and money.
"The management team's 50 years of combined experience has helped the business overcome a number of challenges such as high fuel costs and EU regulation. They are now in a position to capitalise fully on a market which is expected to grow to two billion tonnes by this time next year.
"We have worked hard to put a package together that best suits the individual needs of the business. We will continue to support Macfarlane Transport and will ensure that it can quickly access the funds required to capitalise on any available opportunities."
Simon Banham of Lloyds TSB Corporate added "We have been working on this MBO with colleagues in Commercial Finance over the past months to structure an innovative and robust deal for the customer. We are delighted that Lloyds TSB were able to fund the entire transaction for this flagship Yorkshire brand whose management team will now build on past success."
Rollits solicitors acted on behalf of the management and Kathryn Walters of Eversheds acted on behalf of Lloyds TSB.
Grant Thornton Corporate Finance and solicitors Walker Morris acted on behalf of the vendor.
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
