H2 Equity exits premium logistics group Cadogan Tate to TSG

The company’s management will continue to lead the business while retaining a minority stake, according to a press release. The transaction is expected to close in May following regulatory clearance.

Cadogan Tate will use TSG’s digital capabilities and expertise in developing brands internationally. The sponsor’s growth plans involve taking the company into new geographies and deepening its presence in existing markets through acquisitions and organic growth.

Under the ownership of mid-cap specialist H2 Equity, Cadogan Tate expanded internationally with the acquisition of US-based Wetzel & Sons Moving & Storage in 2020. The sponsor acquired the company from its founders in 2018 via Fund V, which closed on a hard cap of GBP 200m in 2016, according to Unquote Data.

Simon Gilbert, partner at H2, told Unquote the fund will be fully deployed after one further acquisition. The vehicle invests equity tickets in the range of GBP 10m - GBP 20m. This deal marks the second exit from the fund. 

Gilbert said the GP has raised Fund VI, which held a close in October 2021 on GBP 300m. 

As reported by Mergermarket, the vendor ran a competitive sale process advised by Lincoln International and was targeting a mid-teens EBITDA multiple, with direct lenders basing debt packages off annual EBITDA of around GBP 13m.

TSG’s most recent investment vehicle is fund 8, which held a final close on its hard-cap of USD 4bn in 2019, according to Unquote Data. The vehicle invests between USD 100m - USD 300m and will target 10-15 mid-market companies with revenues of around USD 50m - USD 750m in the consumer branded sector which includes personal care, household products, retail, food and beverage, consumer services and franchising, according to Unquote Data.

Company
Cadogan Tate was founded in 1977 in London. It provides international storage, moving and shipping services for valuable goods, including art and wine. In 2017, the company helped Barack Obama and his family move out of the White House.

People
Cadogan Tate - Duncan Orange (CEO).
TSG Consumer Partners - Colin Welch, Beth Pickens (managing directors).

Advisers
Vendor - Eversheds Sutherland (legal); PwC (financial & tax due diligence); Strategy& (commercial due diligence); Lincoln International (corporate finance).

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• Topics
• Buyouts
• UK / Ireland
• Consumer
• Secondary buyout
• TSG Consumer Partners
• H2 Equity Partners
• United Kingdom