www.tdg.eu.com
Transaction Rationale
DouglasBay acquired full control of TDG on 1 October 2008 in a recommended cash offer that valued the share capital at approximately £206m. The transaction saw our seed investor, funds managed by Laxey Partners, contribute a 22% stake which it had accumulated since May 2007, and fund DouglasBay with an additional equity contribution of approximately £65m. This was followed by a further £10m cash contribution via a capital increase in October 2008.
The TDG acquisition was driven by two key considerations:
- TDG is a strong and profitable business in an attractive sector, with a focus on specialised niche logistics markets, a long established customer base and an excellent reputation
- The value of the company’s strong asset base of over 40 owned properties (out of 133 that it operates) was not reflected in the company’s market value at the time of the acquisition, a situation that the Directors believe creates a substantial arbitrage opportunity
Our forward strategy is to unlock value in both these areas, combining a more aggressive commercial strategy basedaround organic growth, acquisitions and geographic expansion, alongside more active management of TDG’s property portfolio, including the pursuit of selective redevelopment opportunities.