lid for HM transport
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Six members of the Govment's Crown Suppliers' isport division have formed ianagement buyout team to for the business when it out to competitive tender autumn, prior to privatisa i early next year.
he Crown Suppliers is the al provider of transport, cc furniture, furnishings and lipment to government detments, the armed forces, ne local authorities and er public-sector bodies. t could be broken up under privatisation plans, says the vernment, but the managent buyout team, led by ird member David Balder', is interested in buying the ire transport division.
The division includes a contract-hire fleet of 3,700 vehicles ranging from motorcycles to HGVs and has an annual turnover of 215 million, five workshops.around the country, and an interdepartment despatch sevice which carries government mail on regular schedules in and around the London area.
"It has been a steadily progressive organisation over the years," says Balderson, "and it could well prove attractive to outside buyers.'
But he is convinced that a management buyout would have a good chance of success, because "the goodwill of the organisation rests with the regional managers and buying specialists in the buyout team".
The team may also consider extending its buyout scheme to an Employee Share Ownership Plan (ESOP) involving all 200 employees in the transport division.
Crown Suppliers transport director David Rowe says it is expected that transport will be sold as one business, but points out that "the Minister has not ruled out breaking it into three individual sections to sell it off."
Overseas buyers will not be barred from taking over any of the businesses: the most security-sensitive parts, including the car service for ministers, have been transferred to the Properly Services Agency.