Connect Group buys Tuffnells in £130m takeover

Newspaper and magazine whole-saler Connect Group yesterday ann oun ced a nearly-£130m deal to takeover Tuffnells Parcels Express, saying that it has a “strong strategic fit” with its business.

 

The deal consists of an initial £113.4m, funded through Connect’s ex ist ing debt facilities, and a £55m rights issue, and an additional £15.3m over three years based on Tuffnells’ business performance.

 

Connect chief Mark Cashmore told Morning Wire that Tuffnells was “outperforming the market consistently, and clearly brings strong growth prospects in the future.”

 

Last year, Tuffnells had a turnover of £127.8m, up 11.5 per cent on 2012.

 

“By combining our businesses we will immediately benefit from opportunities to share skills and create synergies,” said Tuf f nells managing director Lloyd Dunn.

 

Connect’s shares closed 1.2 per cent down at 166.75p yesterday.

 

 

1 Tredget joined Liberum at its inception in 2007 and led the smalland mid-cap sales teams before joining banking in 2013.

 

2 Before Liberum Tredget worked at Collins Stewart Ltd as a smaller company equity salesman and analyst since 1998, executing primary and secondary fund raisings.

 

3 A running and cycling enthusiast, Tredget has a BSc in Banking and Finance from Loughborough University and next year will be getting married in New Zealand.

 

 

Tredget worked with Chris Bowman and Richard Bootle from Liberum as joint financial adviser, joint sponsor, joint corporate broker and joint bookrunner for Connect Group along with JP Morgan Cazenove. Lazard is acting as independent financial adviser in connection with Connect’s rights issue.