CM Downton's deal to buy C&H (Hauliers) has created a haulage group with an annual turnover of more than £114m, and set it on the path to becoming a true 3PL.
Charles Gee Group, parent company of C&H, entered administration last month after citing acute cashflow problems.
Downton – MT Haulier of the Year 2012 – had a turnover of £93m in the financial year ended 30 June 2012, posting a pre-tax profit of £6.3m. C&H had a turnover of £21.2m for the year ended 31 March 2012, with a pre-tax profit of £215,702.
Downton MD Andrew Downton said that C&H was a perfect match for the company because both hauliers work in the paper and publishing sectors.
“Downton wants to be a major, national 3PL in this country, that is responsive, flexible and has the values of a family business,” he said.
“We are now one of very few in the UK with a complete national depot network. It means we are a national business and that brings economies of scale.”
The deal sees 180 staff at C&H transfer to Downton under Tupe regulations (Downton has 1,350 employees in the UK) and adds 130 trucks and 250 trailers to Downton’s existing fleet of 600 trucks and 1,800 trailers.
Downton said that he had absolute confidence in Steve Mercer and the management team at C&H who would remain with the business.
Charles Gee Group remains in administration, with subsidiary Charles Gee Bridgwater – associated with wing loader transporter work for Airbus – still seeking a buyer.
The subsidiary has depots in Bridgwater, Somerset, and Clevedon near Bristol – as well as a project cargo facility at Portland Port, Dorset.
A spokesman for administrator FRP Advisory said: “It is likely that during the on-going administration process there will be redundancies in the group, as overall trading conditions for logistics firms remain challenging.”
