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Connect Group - Acquires Tuffnells Parcels

January 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CNCT
  • Price:
  • 155.25p
Connect, the former Smiths News, has acquired Tuffnells Parcels, a leading national distributor of next day B2B packages, specialising in irregular items in terms of dimension and weight, for an initial £113m. The transaction represents 7.1x trailing EV / EBITDA, falling to 6.3x, once £2m of cost synergies are included. The deal is to be financed via extended debt facilities and an underwritten 2:7 rights issue at 102p to raise £55m.Tuffnells, which was founded 100 years ago in Sheffield, operates from a nationwide network of 34 depots and handles over 10m parcels annually. It also gives Connect access to a new network with core markets worth an estimated £740m out of a total parcels market of £5bn. Tu ...

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