Swiss freight forwarding firm Fracht Logistics has acquired the assets and trade of Drac Logistics’ freight forwarding business, as the Staffordshire-based company teetered on the edge of administration.
In February, Drac Logistics had filed a notice of intent (NOI) to appoint an administrator and filed a second NOI on 9 March, giving it another 10 day moratorium on creditor legal actions, as it worked to secure the company’s future.
The acquisition by Fracht Logistics, for an undisclosed sum, brings the backing of a major international business and will be welcomed by both employees and customers.
Fracht Logistics is a subsidiary of Fracht UK and part of Fracht Group, the Swiss-domiciled, international freight forwarder. Founded in 1955 by Rudolf Reisdorf, the independent and family-owned business has a global presence spanning more than 150 offices in over 50 countries.
Drac Logistics specialises in air, road, rail, and sea freight, European groupage, and worldwide customs and clearance services. It operates three warehouses at it headquarters in Stone, and in Rochdale and Oldmeldrum in Scotland and employs around 33 staff. It has two operating licences - currently under surrender - for a total of 22 trucks and 29 trailers.
Announcing the purchase, Fracht Logistics said the transaction will ensures continuity for customers, secure the future of the business and save freight forwarding jobs at the company. It is unclear if there will be any redundancies at the firm.
Claus Rasmussen, Fracht UK managing director, said: “We are happy to welcome our new colleagues from Drac into the Fracht Group.
“First and foremost, we see a great cultural fit. Both companies are very like-minded in our dedication to customer service and building close relationships with a reliable supplier base, to ensure we meet our promises.
“Together, our combined resources and greater presence across the UK create an exciting platform for growth.”
Alex Hayes, Drac Logistics founder, added: “This represents an exciting new chapter being a part of the Fracht Global family, providing continuity for our staff, customers and suppliers. Providing broader international support and increased resources.
“This allows us to invest further in our people, systems, and global network - ultimately delivering even better solutions, flexibility, and long-term value for our clients.”
David Neate, partner at Evolve Corporate Finance who advised the purchaser on the transaction, commented: “We are delighted to have advised Fracht Logistics on its acquisition of Drac Logistics, a business with a long and proud history in the freight forwarding market.
“The acquisition will see the company develop new and exciting services and enhance its ability to serve a global client base as part of the wider Fracht family – a global freight forwarding and logistics business with an outstanding reputation. We look forward to seeing Fracht Logistics achieve continued success.”
Legal advice to Fracht Logistics was provided by Ansons Law.
The purchase draws a line under a troubled period for Drac Logistics. According to the company’s latest results, for the year to 31 March 2024, turnover fell to £16.7m (2023: ££29.5m) with Drac reporting a pre-tax loss of £757,635, down from a pre-tax profit of £2m in the previous year.
Exceptional items during the year included the write-off of a balance of £826,067 “with a fellow group company which is in administration”, according to the business review of the results.
In December 2024 Drac subsidiary Caledonian Logistics went into administration, two years after it was acquired by Drac Logistics for an undisclosed sum in October 2022.
During Caledonian’s administration it emerged that, following the purchase, Drac’s board had identified extra costs that had not been divulged, according to the administrator.
This included a commitment entered into by Caledonian Logistics before the sale relating to “new trucks under a finance arrangement costing around £750,000.”.
A request for further details from Fracht Logistics on the purchase of Drac Logistics has yet to receive a response.
