Simmonds Transport, a prominent Shropshire haulier, has been acquired by Shilling Group in a transaction valued at £2.75 million.
- The Telford-based company, established in 1972, is renowned for its expertise in general haulage, pallet distribution, and warehousing.
- Shilling Group intends to invest £3 million in fleet expansion and emission reduction for Simmonds Transport.
- The acquisition was facilitated by an invoice finance arrangement with Paragon Bank, leveraging Simmonds Transport’s existing contract debtor book.
- Shilling Group’s acquisition marks a strategic move to enhance operational efficiency and environmental sustainability at Simmonds Transport.
Simmonds Transport, located in Telford, represents a significant acquisition for Shilling Group, concluded for £2.75 million. This move underscores the strategic importance attributed to Simmonds Transport, a firm with deep roots dating back to 1972 and a solid reputation for general haulage, pallet distribution, and comprehensive warehousing solutions.
The company operates from three depots in North Shropshire, overseeing more than 250,000 square feet of warehousing space, along with an operational licence for 100 trucks and 130 trailers. Employing approximately 100 staff members, its latest financial results up to 31 March 2023 indicate an increase in turnover from £15 million to £17 million, albeit with a decline in pre-tax profit to £431,387.
Shilling Group plans substantial investment into the newly acquired business, earmarking £3 million for fleet expansion and emission reduction technologies. This investment aligns with the firm’s wider strategy to enhance the efficiency of its operations while adhering to emerging environmental standards.
To facilitate this acquisition, Shilling Group secured an invoice finance facility through Paragon Bank. This arrangement allowed Shilling Group to finance the purchase using Simmonds Transport’s debtor book from its existing contracts as collateral. Paragon Bank’s senior sales manager, Steve Holmes, expressed satisfaction with the transaction, highlighting the lender’s pivotal role in business acquisitions.
Bart Walkerdine, Operations Manager at Shilling Group, emphasised the positive impact of Paragon’s support, which has enabled the £3 million investment programme. He expressed confidence in the transformative potential of these investments, envisaging a marked improvement in operational efficiency and emission reductions.
Shilling Group’s acquisition of Simmonds Transport signifies a forward-looking strategy to enhance operational efficiency and reduce environmental impact.
