Cargo Services sold to SIMEC in multi-million pound deal
Newport-based Cargo Services (CSUK) has been acquired by SIMEC Shipping, part of GFG Alliance, which includes the Liberty House group of companies.
CSUK, which has a turnover in excess of £10m, provides a ‘one-stop-shop’ for maritime port and onward-distribution logistics. Established in 1995, it specialises in handling all types of general and bulk cargoes via seaborne traffic at its own private port, which includes all-weather rail and ship terminals.
Through its subsidiary Ryan Transport, the group also offers substantial warehousing and storage facilities and onward distribution through the UK and Ireland.
SIMEC is a multi-faceted commodity business spanning five continents, with operations that extend to an industrial base covering Shipping, Infrastructure, Mining, Energy and Commodities. SIMEC is a core member of the GFG Alliance.
GFG’s recent acquisitions have amounted over £1.0bn making it the largest employer in the steel and engineering sector in both the UK and Australia.
These acquisitions, and the group’s broader initiatives and strategies, have laid the foundation for a substantial vertically integrated sustainable business. The acquisition, which will comprise the purchase of 100% of the share capital of CSUK, will contribute to the realisation of this vision.
Other than Tony Davies, Shareholder and Chairman, who will retire, all other CSUK senior management and employees will be retained in their positions to support the continued growth and development of the business.
Grant Thornton supported at all stages of the sale, project managing the process and acting for all shareholders of CSUK. Legal support was provided by Capital Law.
John Davey, CEO, CSUK, said: “We find ourselves at the beginning of an exciting new chapter at CSUK and look forward to working with the new owners at SIMEC. We’ve had a strong direction for many years and we’re very much looking forward to combining our strengths.”
Tony Davies, Chairman, CSUK, added: “I’m proud of what we all achieved at CSUK over the year and I wish the team, employees and the business’ new owners, the very best for the future. I would also like to say a big thank you to the teams at Grant Thornton and Capital Law which were always on hand to provide the advice and support we needed. They exhibited great tenacity, commerciality and ingenuity to drive this deal forward.”
Sanjay Tohani, who led the deal for SIMEC, commented: “We are extremely pleased with the acquisition and are delighted to adding CSUK to the SIMEC group. It will be a fantastic addition to our international presence. We look forward to working alongside those who have propelled CSUK to its current success.”
James Roberts, Corporate Finance Director, Grant Thornton said: “We are pleased to have assisted John, Tony and the team in delivering a great result for the shareholders. The new working relationship between CSUK and SIMEC will create an exciting platform for future growth.”