Permira backs logistics firm with £25 million loan

Kinaxia has bought two family-owned businesses, following three previous purchases from family-owned companies.

Permira Debt Managers (PDM) has extended a £25 million long-term loan to Kinaxia Logistics, to support the acquisition of Foulger Transport Limited and Lambert Brothers Haulage, according to a statement.

Direct lending fund Permira Credit Solutions II (PCS2) acted as sole lender to Kinaxia, which operates in the UK warehouse, haulage and logistics sector, with a strategy to create a new leading scale player in a highly fragmented industry. The purchases follow previously completed acquisitions of Bay Freight Limited, William Kirk Limited and NC Cammack & Son Limited.

Thomas Kyriakoudis, chief investment officer of Permira Debt Managers, said: “We are delighted to back the Kinaxia management team and its plans to consolidate the UK road haulage industry. The 5 companies acquired to date are all family-owned businesses with decades of history and strong local market knowledge.”

The deal is one of six so far from PCS2. The fund is said to be near final closing on its hard-cap of €800 million, as previously reported by PDI. It held a first close of €400 million in October 2014, raising commitments from pension funds, insurance companies and family offices across Europe, North America, Asia and the Middle East.