Lender Shawbrook backs multi-million pound management buyout of Merseyside logistics business H&M Distribution Group. Tony McDonough reports

H&M Distribution Group managing director Dean Woodyer has led an “eight-figure” management buyout of Merseyside-based H&M Distribution Group.

From its headquarters in Newton-le-Willows, H&M provides UK and international transport facilities from hubs in Warrington, St Neots and Gloucester. Founded in 2007, the firm employs more than 150 people.

Its most recent accounts, for the year to June 30, 2021, shows turnover of £23.6m – up £3m on 2020. Pre-tax profits almost trebled to £1.8m from £632,000 in 2020. The company said this rise was partly due to an efficiency drive.

H&M’s majority shareholders, who will remain in the business, had been preparing for succession for more than four years. They were focused on rewarding members of the MBO team responsible for “driving volumes to new levels”.

Matt Scott and Hamish Morrison of BHP Corporate Finance introduced H&M to lender Shawbrook specialists. It was able to offer a bespoke hybrid funding package. This included a working capital facility, to support further growth under Dean Woodyer.

Mr Woodyer said: “We have been preparing for this MBO for nearly five years and wanted a banking partner with experience and sector knowledge.

“Shawbrook went the extra mile to build a proper relationship and provide a tailored solution. The whole senior leadership team at H&M is looking forward to building on that momentum to drive further growth.”

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H&M was advised on the deal by BHP Corporate Finance and by Clarion’s corporate team, led by Sarah Harrison. Its banking team, led by Ben Slack. Gordons advised the management team. Shawbrook was advised by gunnercooke, and financial due diligence was provided by Azets.

Matthew Fannon, director at Shawbrook, added: “The management buyout follows several years of significant growth and careful succession planning at H&M. 

“We were able to provide the team with a flexible solution made up of structured-term debt alongside a working capital facility. We look forward to seeing the MBO drive further growth and success for H&M.”