Management buyout saves Exel contract
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• Exel Logistics' transport contract with Coloroll subsidiary Denby is safe now that the tableware manufacturer has been sold to its management.
A second Coloroll management buyout has been announced at Kosset Carpets in Bradford.
Coloroll was placed in the hands of the receiver trailing debts of up to 050m. The management buyout at Denby, backed by venture capital group 3i, is believed to have cost between .2.5m and Y1Om.
The Kosset buyout, backed by Fhildrew Ventures, cost M-20m.
Exel's Newcastle-underLyme branch has held the Denby contract since February and has 12 vehicles dedicated to the task. Jim McColl, Exel's marketing manager for consumer industries, is pleased by the turn of events: "Denby is still producing and we are still delivering — so nothing has changed."
At Denby, finance director Nick Steele agrees: "It's our intention to continue the contract with Exel and we have no intention of reducing the level of transport activity. If anything, we will be looking for expansion in the next four to five years".
Kosset will continue to distribute through four specialist distributors — Carpet Express, ED Berry, Carrolls and Longton Distribution.