EQT buys Parcel2Go from Mayfair

Harriet Matthews
17 June 2021

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EQT Private Equity is to acquire a majority stake in UK-based parcel delivery business Parcel2Go from Mayfair Equity Partners.

Mayfair will retain a minority stake in the business following the deal, which is expected to close in July 2021.

Unquote sister publication Mergermarket reported in December 2020 that the GP was exploring sale options for Parcel2Go following its significant growth in 2020. Parcel2Go generated around €5m in EBITDA on Mayfair's investment, compared with more than €10m in 2020, the report said, with the company expected to generate a valuation multiple in the mid-teens.

EQT is investing via the EQT Europe Mid-Market fund, which held a final close in May 2017 on €1.6bn. The fund invests in businesses with enterprise values of €100-300m, targeting companies based in northern Europe. The fund aims to make 15-17 investments during its investment period. Parcel2Go will be the fund's 13th platform investment, according to Unquote Data.

EQT said in a statement that it intends to support Parcel2Go by increasing its presence in existing markets via organic growth and M&A, as well as by using the firm's sector expertise.

Mayfair acquired Parcel2Go in an MBO in December 2019, deploying equity via Mayfair Equity Partners II. The fund held a final close in January 2019 on €650m and deploys equity tickets of £20-150m, focusing on the media, telecommunications and technology sectors.

Parcel2Go will be Mayfair's second exit from the fund, according to Unquote Data. The GP sold its stake in advertising business SuperAwesome alongside the company's other investors in a trade sale to Epic Games, netting a 43% IRR and acquiring a stake in Epic Games as part of the sale.

Company
Parcel2Go is headquartered in Bolton and was founded in 1991. The company provides parcel delivery and courier services for SMEs and small businesses, as well as software including SmartSend, which allows users to manage deliveries across online marketplaces including Amazon, Etsy and eBay. Parcel2Go reported revenues of £100.6m in the 2020 financial year to 31 March 2020, alongside EBITDA of £4.2m, compared with revenues of £89.3m and EBITDA of £3.6m in the 2019 financial year, according to its latest publicly available accounts.

People
EQT Private Equity – Victor Englesson (partner).
Mayfair Equity Partners – Kunal Dasgupta (partner); Daniel Sasaki (managing partner).
Parcel2Go – James Greenbury (executive chair).

Advisers
Equity – PwC (corporate finance); Allen & Overy (legal).
Vendor – Drake Star Partners (corporate finance); EY (commercial due diligence); PwC (financial due diligence); Goodwin Procter (legal); Liberty Corporate Finance (corporate finance).