Partnership Investment Finance

RMS Europe Group: Expansion for Hull logistics group

THE COMPANY

 

Founded in 1990, RMS Europe Group provides shipping, stevedoring, storage/warehousing and supporting logistical services for both import and export cargoes moving between Northern Europe, Scandinavia & the Baltic, Russia, the Iberian Peninsula and the Mediterranean.

The activities of RMS Europe Group Limited are firmly rooted on the UK ’s busiest trading estuary, the River Humber. In 2006, the Group handled in excess of 28,000 containers and 2.1 million tons of cargo through its strategically located port operations based in Goole, Grimsby,  Immingham and the River Trent.

The company employs 247 staff and has a turnover of £30m.

THE PROBLEM

 

Significant growth opportunities in the port sector have been fuelled by the increasing cost per mile of road haulage.  An original MBO had taken place in 2004 which saw Aberdeen Asset Managers Growth Capital achieve in excess of twice their original investment from the exit. Following the original MBO the company went from strength to strength and gave an opportunity for a deal off-market. 

To complete the deal, Partnership Investment Finance made an investment of £1.5m, its largest to date, as part of an overall package amounting to £5.5m.

THE SOLUTION

 

The first step was to make sure that the structure for a successful buy-out was in place. This included facilitating the return of Peter Aarosin, Managing Director of competitor Danbrit Shipping, who left RMS following its initial MBO in 2004. In addition, a strong management team was put in place including RMS shareholders who had been part of the previous MBO and were experienced in the process.  Further, a business plan was approved to support the organic growth of RMS Group through acquisitions and funding.

Andy Wright, Investment Manager for PIF, said: “The investment of £1.5m by PIF shows the faith we have in the strength of the business and the management team. This is a significant development for the region and a great opportunity for PIF to become involved in an established business with excellent growth prospects”

Mr Aarosin commented: “There has never been a better time to be involved in this business sector in Yorkshire and the Humber , with the region’s logistics industry growing at a quick pace.  People are starting to think more globally and the combination of rail, road and sea is doing very well.”