Mon, 16 Jan 2023 | BUSINESS SALE
Food temperature-controlled storage and logistics firm Associated Cold Stores & Transport (ACS&T) has been acquired by HSH Cold Stores from agriculture group Camellia Plc in a £16.5 million deal. The deal represents a 27.5x multiple of ACS&T’s £0.6 million pre-tax profits for the six months to June 30 2022, during which time it generated revenues of £13 million.
The deal, initially announced in December, expands HSH’s strategic presence, adding ACS&T’s Grimsby, Tewkesbury and Wolverhampton facilities and increasing its storage capacity to approximately 140,000 pallet positions. The acquisition brings the total fleet of the merged businesses to 75 large goods vehicles (LGV) lorries.
The completion of the deal comes at a time of accelerating M&A activity in the logistics sector. Despite mounting headwinds and falling confidence, a survey last year by BDO and Barclays found that 45 per cent of logistics firm owners polled were targeting acquisitions over the coming year, seeking increased scale, expanded service offerings, higher margins and greater tech uptake.
HSH’s acquisition of ACS&T reflects several of these trends, giving the acquirer (which is part of the European Constellation Cold Logistics group) a greater strategic presence and increasing the scale of its storage and fleet.
Commenting on the deal, HSH Managing Director Anthony Howard said: “We are enormously proud and excited to welcome ACS&T to the HSH family, the acquisition provides a unique opportunity for HSH to expand its storage and distribution services for our new and existing customers.”
“Having co-founded HSH nearly 20 years ago, I am extremely proud to see how our company has grown over the years and would like to extend my gratitude to our team on reaching this milestone. I look forward to collaborating with the team at ACS&T to accelerate our growth and develop new high quality cold chain solutions.”
Read about the factors driving M&A activity in the UK logistics sector.
Find businesses for sale here.
If you are looking for an exit, we can help!.
An opportunity exists to support or acquire a well-established West Midlands based distributor specialising in branded IT hardware and services.
This is a unique opportunity to acquire a well-established company with a robust client base of over 1,100 clients across the UK, offering bespoke services and high client retention rates.
An established and reputable supplier of sustainable food packaging and related consumable products presents an exciting opportunity for those passionate about eco-friendly business practices.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.