CitySprint, the UK’s leading same day distribution network company which is headquartered in London, has acquired Southampton-based courier firm Dash-it, in what continues to be a record year of organic growth for the business. This brings the number of acquisitions made by CitySprint in 2013 to five and the total number completed since it received investment from UK mid-market private equity firm Dunedin in 2010, to thirteen.
CitySprint operates from 37 service centres in the UK. Its fleet of over 2,500 couriers can deliver to over 80% of mainland UK population, within 60 minutes. Last month CitySprint also completed the acquisition of Bullit Couriers, based in Brighton.
With Dunedin’s backing, CitySprint has enjoyed rapid growth over the last three years and recently posted record results for the year ending 2012, in which turnover increased to £101 million, a 36% increase on the £74 million the previous year. EBITDA increased by 33%, with profit after tax mounting by 18% in the same year.
Nicol Fraser, partner at Dunedin who sits on CitySprint’s board, commented:
"CitySprint is now the established market leader in UK same day distribution and this latest acquisition will allow the business to further diversify its courier services and leverage another significant UK market opportunity in the in-night logistics segment.
“We take an active role in the development of the businesses that we back and are dedicated to further strengthening CitySprint’s position. The company’s impressive growth rate over the last three years, is an example of how we can really add value.”
CitySprint is the UK’s largest privately owned same-day distribution company. Its network of self-employed couriers means that the business is both highly flexible and scalable. The acquisition of Dash-it will allow the business to diversify into a new service – ‘in-night’ courier services - as well as expanding its support into the mobile workforce parts logistics sector, which represents another significant opportunity further organic growth.
Patrick Gallagher, Chief Executive of CitySprint, commented: “This latest acquisition is an exciting development for our business and presents another new market opportunity of some size to our group. Our business is going from strength to strength and continues to deliver strong organic growth. Development of products and technology particularly within the retail and healthcare divisions has been key and we expect to see further growth in 2014.”
Dunedin recently closed its £300 million Dunedin Buyout Fund III and was named ‘Small Buyout House of the Year’ at the British Private Equity Awards 2013. In the last twelve months Dunedin has completed two invesments in rapid succession - the £34.5 million management buyout of Premier Hytemp in December and then the £43 million buyout of Trustmarque Solutions in June. Dunedin has also completed two exits in this period - etc.venues and Practice Plan, realising money multiples of 3.2x and 2.8x respectively.