LDC buys CitySprint for £175m

As part of the deal, Dunedin reinvested to retain an equity stake. It is understood the transaction generated a 2.8x return for Dunedin.

With the support of its new investors, CitySprint aims to accelerate the development of its technology focused on the final mile of delivery, labelled LastMileLink Technologies. It will also boost the ongoing rollout of its On the Dot service, which allows shoppers to select a one-hour delivery window.

LDC investment director Matt Newbold has joined CitySprint's board, alongside Dunedin investment director Nicholas Hoare, who is retaining his seat.

Debt for the deal was supplied by RBS, Clydesdale and HSBC.

Previous funding
Dunedin invested £33.1m in CitySprint in December 2010. Following that deal, the GP has supported CitySprint in 21 add-on acquisitions. At the time, CitySprint was generating revenues of £61m. The company's revenues have grown 19% each year since Dunedin's investment, while EBITDA has also grown at an annual double-digit rate.

Company
CitySprint is a same-day delivery company that operates a national network of 40 service centres and claims to be able to reach 88% of the UK in less than one hour.

In 2014, the business generated turnover of £146m and EBITDA of £16.8m.

CitySprint is based in London and was founded in 2000.

People
Dunedin – Nicol Fraser (partner); Nicholas Hoare (investment director).
LDC – Andy Lyndon (director); Matt Newbold (investment director); Martin Draper (co-head, CEO).
CitySprint – Patrick Gallagher (CEO).

Advisers
Equity – PwC (financial due diligence); Eversheds (legal).
Company – Catalyst Corporate Finance (corporate finance); Squire Patton Boggs (legal); Wyvern (debt advisory).
Debt – DLA Piper (legal).

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