Freightliner acquired by Arcapita
Freightliner Group Ltd today announces that it has been acquired by Arcapita, an international investment firm based in Bahrain, for an undisclosed sum, and subject to clearance by the European Commission.
Arcapita will acquire Freightliner Group Ltd from its previous owners 3i, Electra Private Equity and Freightliner management and staff. 3i and Electra were the founder majority shareholders of Freightliner at privatisation in 1996.
Freightliner is a successful and growing organisation, with an excellent reputation for reliability and innovation in a demanding market. During 3i and Electra’s ownership, Freightliner has expanded its activities to include the haulage of bulk freight as well as becoming the largest haulier of maritime containers in the UK. Furthermore, it has developed into Europe with an operational subsidiary in Poland. During 3i and Electra’s ownership, employment numbers have grown from 1095 to 1828.
The change of ownership will ensure that Freightliner can continue to invest in and develop its Intermodal and Heavy Haul businesses, and enhance its international activities.
The operating companies, executive directors, management and staff, will continue with little change to lead the company in the future. All existing contractual relationships, including contracts of employment and pensions will remain unaltered by the change of structure.
3i and Electra are pleased with the development of their investment in Freightliner and say that Freightliner’s management have delivered an exceptional performance by concentrating on the efficient delivery of customer focussed rail based logistic services.
Arcapita are pleased to have the opportunity to back the highly professional management team at Freightliner, and their plans for continued growth of the Group.
“I see this as the next stage in the development of Freightliner. 3i and Electra have been very supportive partners, enabling the business to grow into the market leader it is today ” said Eddie Fitzsimons, Chief Executive of Freightliner Group Ltd. “We look forward to the next stage of development in our existing businesses and emerging overseas activities. Freightliner Group has been very successful in a competitive market place, we have a clearly developed business strategy and investment plans remain in place, therefore, it is very much, “business as usual”.
Notes to editors
About Freightliner Group Limited
Freightliner Group Limited is the parent company of Freightliner Limited (the container business), Freightliner Heavy Haul Limited (the bulk rail freight business) Freightliner Maintenance Limited (a separate entity dedicated to the repair and maintenance of traction and rolling stock) and their European subsidiary, Freightliner PL Sp. z o.o.
Freightliner Limited is the UK’s largest haulier of maritime containers, accounting for 20% of the total market share, and 81% of the rail-fed market. Its business is concentrated through five key deep-sea ports: Felixstowe, Southampton, Thamesport, Tilbury and Seaforth. The company provides trunk rail services between these ports and inland railports (of which they own and operate 8), moving customers’ containers on the first or last leg of a worldwide voyage, and transport up to 3,000 boxes per day. In it’s unique logistics offering, Freightliner also has its own fleet of vehicles to complete the final road leg of the journey.
In March 2004 ‘Logico’ was launched as a new and complementary division to encourage a more diverse group of freight movers to use Freightliner’s reliable and efficient Intermodal services. It provides regular rail-service space without the need to make a long term commitment. In 2005, just a year after its inception, Logico was awarded the IFW Rail Freight Award for attracting new rail freight business.
3i is a world leader in private equity. We focus on Buyouts, Growth Capital, Infrastructure and Quoted Private Equity (“QPE”) and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our business relationships. These underpin the value that we deliver to our portfolio and to our shareholders.
For further information please contact:
Kathryn van der Kroft
tel. +44 207 975 3021