Expansion through acquisition and investing in technology

Overview

The company’s flexible, highly scalable business model and custom-designed technology created the platform for enhanced growth through acquisition. We supported CitySprint through 27 of these acquisitions in just seven years.

The opportunity

We took the decision in 2010 to invest alongside the CitySprint leadership team in a management buyout. We were instrumental in defining and delivering their strategy of consolidating a fragmented market through a significant buy-and-build programme. To date, together, we’ve completed 27 acquisitions, and in less than seven years have built the UK’s largest privately owned same-day distribution network.

We worked alongside CitySprint to support them, bridging the bank debt to enable the original buyout and then re-financed the debt at a later date to ensure the very best bank debt terms. We also provided further funding for acquisitions when needed.

Crucially, we helped shape and implement the strategy to invest heavily in new technology. By creating its own technology hub, Last Mile Link, CitySprint transformed itself from a traditional distribution business to a technology/software firm. We also helped define the company’s wider strategy, and provided support on major acquisitions, such as Lewis Day Transport.

Working together

Having been through such rapid growth with CitySprint, we’ve come to know the team extremely well. This has been a big part of the success story, and we know it’s important to them. Patrick Gallagher, CitySprint’s Chief Executive, confirms this: “Out of everyone we met, Dunedin really wanted to understand what we did. I don’t think our relationship could be any better. It’s all about being open and sharing ideas, and that trust is crucial to the support Dunedin has given us. Smart minds around a table with trust thrown into the mix is a very powerful combination.”

Looking ahead

In February 2016, we sold our original shareholding in CitySprint, in a secondary management buyout to Lloyds Development Capital. The transaction enabled Dunedin to retain an equity stake in CitySprint.

We are delighted to continue supporting CitySprint as we believe there is significant future value to be generated through the continued consolidation strategy and crucially the maturation of the LastMileLink technology division.