DX agrees £315 million takeover

Slough-based courier group DX has agreed a cash takeover deal with HIG Capital LLC, this deal was overseen by HIG European Capital Partners LLC.

Funds for the deal have been revealed at £315 million and also means that DX shareholders will be entitled to receive 48.5 pence per share - a 33 per cent premium.

Reasons for the takeover, according to HIG European, are that DX shares ‘continue to suffer from limited secondary market liquidity’ and that DX ‘can better reach its full potential in a private market setting with a greater focus on longer term value creation, enabled by the acceleration of investment in growth.’

HIG believes the acquisition will also allow the company to venture into new markets. DX Chair Mark Hammond said: ‘'The offer recognises the value of the platform that has been built, offers shareholders an opportunity to crystallise an attractive value for their holdings and provides DX with an excellent partner for the next stage of its development.’'

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The deal was originally meant to happen in October, specifically no later than 1700 BST on October 9, with HIG agreeing to be bound to the announcement of the acquisition. However, the positive nature of discussions prompted DX to extend the deadline.

Gatmore Capital is DX’s largest shareholder, with a 19 per cent stake. The company was central to DX's bail out.

Liad Meidar, managing partner of Gatemore Capital Management LLP, said: ‘'We are pleased to have played a central role in the rescue of DX and in working closely to oversee an exceptional turnaround and build DX into a market leader.

''The company has a bright future ahead and we wish them continued success.’

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