Eddie Stobart buys UK pallet distribution services provider TPN
Supply chain, transport and logistics firm Eddie Stobart has acquired pallet distribution services provider, The Pallet Network (TPN), in a deal valued at around £52.8m.
With 106 regional hauliers (members), the TPN provides pallet distribution services across the UK and Ireland.
TPN managing director Mark Duggan said: ‘’We were very pleased to be approached by Eddie Stobart, which has extensive experience within the logistics industry and the team have built a market leading end-to-end supply chain business, across the UK and in Europe.”
The pallet network concept includes hub and spoke distribution mode, which is based on the analogy of a bicycle wheel.
Through its 121 depot locations, the TPN will help regional hauliers to provide cost-effective, environmentally sustainable and operationally efficient service to their customers.
TPN manages two regional Hubs, including northern hub near Preston and the second regional Hub in Northampton.
Northern hub handles pallets which both originate in and are destined for Northern postcodes. Northampton has a pallet capacity of 8,000 per night.
The acquisition will help Eddie Stobart to enhance its existing skills and capabilities, including meeting customer needs for smaller load deliveries.
The acquisition is said to provide an exit for Paris’ institutional backers LDC, the private equity arm of Lloyds Banking Group.
Eddie Stobart CEO Alex Laffey said: “In line with our strategy, we are delighted to be able to invest in TPN as this significantly enhances the skills and capabilities of Eddie Stobart in a space that we currently do not operate in. Furthermore, it strengthens our position as a leading provider of end-to-end supply chain solutions.
“The members of TPN will provide a competitive advantage as we will be partnering and working with companies that are experts in their own regions and more importantly, have substantial experience of delivering final mile pallet solutions.”