The future of Linconshire Hazchem and Palletways Network haulier Rase Distribution has been secured after it was sold to HW Coates in Leicestershire.
Rase MD Geoff Hill said Coates was the best fit for his business and with “no natural family succession” in the company he agreed to sell it in January for an undisclosed sum.
Hill said: “Coates are a very credible company that I have known for years and the directors for a very long time. If I was going to sell to anyone then they would be the ones.
“It was a good time and it was a positive offer from a positive company.
“We are a strong company and a strong company has bought us,” he added. “They want to move it on, invest and grow their business as well. We are part of their growth plans.”
He added that four companies initially expressed interest in buying Rase but that the “best fit” was HW Coates.
“Rase have enjoyed strong working relationship with the Coates business for many years, sharing customers within the chemical industry.
“Both Rase and Coates were founder members of the Hazchem Network when it commenced trading in 2004, clearly this brought both companies even closer together making the decision to ultimately sell to them so much easier,” said Hill.
Hill, who has been a director at Rase for nearly 25 years, will continue working with the company until 2021. He then has the option to continue or take semi-retirement.
Paul Simpson, a partner at solicitors Andrew & Co, which acted on behalf of Rase, said: “Rase has led from the front in its field for over 50 years and I'm confident they will continue to go from strength to strength under the HW Coates group.”
Rase was founded in 1967 and its headquarters are in Langworth. It has a licence authorising up to 52 HGVs out of two depots in the county.
The last set of accounts for HW Coates, for the year ending 31 December 2016, showed that the company’s turnover climbed to £37.7m (2015: £36.5m) and pre-tax profit was £20.5m (2015: £12.1m).
