Alantra advised the shareholders of CitySprint on the growth capital investment by LDC who join Dunedin as a strategic shareholder in the business

Jan 2016

Capital raise

Alantra has advised the shareholders of CitySprint on the growth capital investment by LDC who join Dunedin as a strategic shareholder in the business.

The investment by LDC values CitySprint at £175m. Dunedin, the mid-market private equity firm, continues to hold an equity stake in the business and the CitySprint management team, led by CEO Patrick Gallagher, retains a significant shareholding in the group.

The transaction provides new capital for the next stage in the Group’s strategy, building on CitySprint’s position in high growth, last mile retail and healthcare sectors. The investment also enables the group to accelerate the development of innovative final mile delivery solutions in newly-created LastMileLink Technologies division, while supporting the ongoing roll-out of CitySprint’s On the dot retail and consumer brand – a delivery service allowing shoppers to choose a one hour delivery window launched in 2015. The Group said it will also continue its ‘buy and build’ strategy to complement CitySprint’s strong organic growth achieved over the last five years.

CitySprint operates the UK’s largest privately owned network with over 3,000 couriers, 40 service centres and leading technology solutions employed across a range of specialist sector products and services including; retail, pharmacy, pathology and auto parts same day logistics.

CitySprint achieved average annual revenue growth of 19% between 2010 and 2015, producing organic growth of over 60% over this period and further scale has been achieved through a series of 21 acquisitions. The Group produced consistent double digit EBITDA growth per annum whilst investing significant CAPEX in the business over the same period. In the year to 31 December 2015, the Group generated £146 million in revenue, up 14% on 2014, with an underlying EBITDA of £16.8 million.

Alantra originally advised CitySprint on the investment by Dunedin in 2010 and has worked closely with the business since this time.