Entrepreneurs Hub advise on the sale of specialist palletised freight distribution business Pallet Plus to Expect Distribution
Pallet Plus Ltd is an Essex-based distribution business, specialising in regional distribution as well as providing a national final-mile service though its membership of TPN, UPN and Palletways. Entrepreneurs Hub advised the shareholders of Pallet Plus Ltd, negotiating a successful sale to Yorkshire-based Expect Distribution, a UK-wide warehousing and logistics company.
Pallet Plus has achieved great success through its reputation as the go-to supplier of national distribution services from the Essex area. It has significant advantages in the market by working with three well-established pallet networks, which is unusual in the industry.
“The fantastic reputation, dedication of the senior management team and drivers, operational capabilities and longstanding membership with three national pallet networks, were more than enough for us to consider this acquisition. But beyond this, the cultural fit of the business was key. Pallet Plus are clearly a company punching above its weight and we are certain the two businesses will integrate seamlessly.” Matthew Kilner, Managing Director – Expect Distribution Ltd
The company’s proximity to major ports of entry/exit offers significant opportunities for growth. This growth potential, coupled with strong financial performances in the last few years made Pallet Plus an extremely attractive acquisition target and interest from the industry was high.
Expect Distribution is equally well regarded and has won numerous awards for its services over the past few years. The company has been very successful following an MBO in early 2022 and is ambitious to grow its coverage of the UK. The acquisition of Pallet Plus is a great step towards that objective, adding an important strategic base in the South and taking Expect Distribution’s turnover to more than £60million.
“With the purchase of Pallet Plus, we can not only significantly increase our presence in Southeast with an owned operation but also bolster the proposition, by expanding the transport side of the business and introducing, in the medium term, a new warehousing offering which has been an important growth area for us in Bradford over recent years. I’d personally like to thank the team at Pallet Plus, and we look forward to working with them, to take both businesses forward.” Andy Taylor, Operations Director – Expect Distribution Ltd
Efficiency was a key distinctive of Pallet Plus with some unique operational systems that can now be shared across the wider organisation. The Pallet Plus fleet of over 40 vehicles run at an average capacity of 92%, far exceeding industry targets and on-time delivery rates are maintained at an impressive 98%.
For Pallet Plus shareholder and Managing Director, Gary Rowe, selling was an opportunity to unlock the value in his business and regain some time and energy to focus on other interests.
“For us it came down to trust. It took 25 years to build a very successful business in our sector, but the biggest decision we ever made was the appointment of Entrepreneurs Hub. If we were to do it all again, it would be with Entrepreneurs Hub.” Gary Rowe, Managing Director – Pallet Plus Ltd
“I am very pleased for Gary and Arlene, and for the team at Pallet Plus. Expect Distribution is a great acquirer for the business and I am sure that together they will go from strength to strength.” Rob Rickard, Financial Director and Deal Lead – Entrepreneurs Hub
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