Endless starts Enact III deployment with SEA Transport acquisition

Wahida Ahmed
21 November 2022

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UK-based sponsor Endless has acquired Suffolk-based SEA Transport Limited, a family-owned port services and logistics company, marking the first investment from Enact III.

Enact will support a management buy-in team while retaining the incumbent founding family members, according to a press release.

With the support of the sponsor, SEA will expand its business to further ports across the UK with a view to becoming a national platform as well as continuing growth in Suffolk.

Paul Lyon, who has prior experience at The Road Haulage Association, has been appointed chairman of the board of directors. Richard Preston has been appointed CEO; previously he was the managing director of Go 2 Group for almost three years, according to LinkedIn.

The latest of the GP's SME-focused series, Enact III closed on GBP 100m in July 2002, according to Unquote Data.

Unquote reported that the fund was expected to start investing in H2 2022 once Enact II has made its last platform investment. The new vehicle provides equity cheques of up to GBP 10m, a GBP 5m increase from its predecessor, to acquire UK-based companies generating GBP 10m-50m turnover, with scope for bigger companies. It targets businesses that are in challenging situations and do not meet the investment criteria of traditional private equity or bank funding.

Recent transactions in the logistics sector include Verdane's investment in Instabox, a Swedish e-commerce company; Epiris' acquisition of London-based Inchcape Shipping Services, a maritime services provider; and H2 Equity's sale of Cadogan Tate to TSG, all announced in April 2022.

Company
SEA is based in the port of Felixstowe providing distribution, marine haulage, and container transport services across the UK.

People
Enact – Felix Connolly (investment director).
Sea Transport Limited – Chris Smith (founding family member), Frazer Smith (founding family member), Richard Preston (CEO), Paul Lyon (chairman).

Advisers
Vendor – Gotelee (legal).
Equity (Enact) – Womble Bond Dickinson (legal); Tax Advisory Partnership (tax).
Management – GJC Advisory (consultants); Ward Hadaway (legal).