MBO renames Heron Distribution as Merlin
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by Elizabeth Daly • Heron Distribution, the profitable subsidiary of insolvent Heron International, has been acquired in a 112m management buy-out. The company, renamed Merlin Distribution, is headed by managing director Richard Morris who was with Heron Distribution for nine years and led the buy-out.
Heron Distribution lost conn-acts earlier this summer worth at least 17m a year due to the uncertainty surrounding the parent group, but it has recently won a .12m deal with British Steel and a contract worth an undisclosed amount with Sainsbury's.
New contracts have brought turnover up to 130m from a previous 134.5m, according to Morris. Pre-tax profits are on schedule to equal last year's 12.3m by the year end on 31 March.
The purchase price reflects the health of the company, which is extremely viable and moving forward," says Morris. We would not have received the level of institutional backing if they were not confident about our future: in our favour is the wide spread of the markets we operate in."
The company is ranked about 50th UK haulier in terms of sales. It employs 8(10 people and is based in Westbury, Wilts with 25 UK operating centres.
Merlin Distribution's customers include Zanussi, Wickes, Electrolux, John Menzies and Suzuki. It is also in negotiation with a fuel company. It currently operates about 300 tractor units and 700 trailers.
The MW) was led by Granville Private Equity Managers and supported by 3i and Prudential Venture Manager.