- 18 February 2016
- Transport / Logistics Services
Private equity company Lloyds Development Capital (LDC) have bought a stake in the UK same day delivery company CitySprint that values the business at £175 million. This will help the business expand to the next level.
LDC join the main shareholder Dunedin that has retained its equity stake in the courier. The CitySprint management team maintain their majority stake.
The transaction will provide significant new capital for the next stage in the company’s journey and should help cement its position in the fast growing, £1.7bn same day delivery market.
CitySprint has also announced of its new ‘hothouse’ division called LastMileLink Technologies. This aims to accelerate the development of innovative new products for the company and improve the delivery platform infrastructure.
Patrick Gallagher, CEO of CitySprint, said: “We have a really strong partnership with Dunedin and LDC is joining us, as a key strategic investor, at a very exciting time in our business as we capitalise on our first mover advantage in the same day market.
“We are perfectly placed to take advantage of the increasing demand for same day and specified hour fulfilment. This is being driven by consumers seeking confidence and convenience and from a growing number of retailers looking to out manoeuvre their competitors.
“But we can never stand still. In recent years we have invested significantly in our technology to support our leadership position, and this will continue to be an important part of our growth strategy. We will also continue to attract excellent people throughout our business, who are the cornerstone of our success.”
The company has 40 service centres and over 3000 couriers, and generated a £146 million in revenue in 2015. It has also launched its ‘On the dot’ retail and consumer delivery service last year that allows e-commerce shoppers to choose a one hour delivery window.