Takeover of delivery group with sites in Willenhall and Tipton is agreed
Deliveries group DX, which has sites in Willenhall and Tipton, is being taken over by a private equity investment firm.
The board of DX has agreed to the acquisition by a subsidiary of funds advised or managed by HIG Capital of the entire share capital.
DX shareholders will receive 48.5p per share which values DX at £314.8 million.
The buyer recognises the strong performance and progress made by DX in recent years, but believes that DX can better reach its full potential in a private market setting.
HIG has a strong track record in the business services and logistics sectors deploying capital and expertise into growth-oriented businesses and supporting their management teams in achieving their strategic ambitions. HIG has considerable capital resources and deep industry-specific knowledge, allowing it to support driving the next phase of growth for DX.
The DX directors intend to recommend unanimously that DX shareholders vote in favour of the scheme at the court meeting.
Tobias Borkowski, managing director of HIG, said: “We are delighted to be announcing this recommended cash acquisition of DX.
"DX has long established itself as a leading provider of specialist delivery services in the UK, supported by a strong management team, diligent workforce and well-invested infrastructure. We look forward to partnering with the DX management team in accelerating DX's next phase of growth.”
Mark Hammond, chairman of DX, said: “Since the introduction of its turnaround plan in 2018, DX has demonstrated a strong track record in sales growth, profitability, and margin improvement. This progress has been most recently evidenced in our latest full year results which recorded the highest revenue in our 48-year history."
DX was established in 1975 as a document exchange service to the legal sector. It now provides a wide range of overnight delivery services, as well as logistics services. The group operates through two divisions – DX Freight and DX Express.