Chandos Fund
Hargreaves (UK) plc
| Website | www.hargreavesservices.co.uk |
|---|---|
| Business Services | Bulk Haulage |
| MBO | £12 million |
| Status Current | portfolio investment (partial realisation) |
| AIM Float | November 2005 |
| Location | County Durham |
In the ten years following its founding in 1994, Hargreaves has established itself as the largest independent bulk haulage company in Britain. The group has a national network of depots and facilities, and specialises in waste haulage and supplying and processing carbon-based minerals. Based in County Durham, it is also one of the largest independent companies in North East England.
In 2004, owner and founder Bob Young wanted to take a back seat in the business and hand over control to the management team. Chief Executive Gordon Banham and Finance Director Peter Dillon led the management buyout with support from YFM Group. YFM Group saw great potential in Hargreaves, with strong barriers to market entry, a proven management team, attractive growth markets and the potential for further acquisitions.
Banham and his team rapidly grew Hargreaves through a series of strategic acquisitions, notably the purchase of the UK's last independent coke production unit from UK Coal.
Hargreaves floated on AIM in November 2005 at a valuation of £58 million giving YFM Group a total return (realised and unrealised) of 3.5x money in 18 months. The IPO was substantially oversubscribed, and since that date the share price has increased by over 130% (to April 2007). YFM Group has retained a substantial stake, confirming its faith in the long-term value of the business.
