The deal

Our Debt Advisory team has advised UK’s fastest growing e-commerce and specialist distribution group, The Delivery Group on securing an upsizing of its banking facilities to support the continued substantial growth of the group.

The Delivery Group (“TDG”), backed by private equity investor Next Wave Partners, provides national and international SME e-commerce and specialist direct mail services. The Group has a combined turnover of c£300 million, operating from six national sorting hub locations, supported by more than 500 employees and infrastructure that can handle over a billion items per year.

Our Debt Advisory team, led by Partner Tom Cox and Senior Manager Amit Bagga was appointed as exclusive debt advisers by TDG to secure an upsized refinance. Our team approached several lenders capable of providing both ABL and term debt solutions as part of a competitive debt raising process delivering a variety of fully credit approved funding options before securing an attractive final offer from the incumbent lender, Praetura Commercial Finance (PCF). PCF underwrote the full financing ask at an attractive cost of capital, delivering an optimum financing solution and runway for future growth.

The new structure will increase the day-to-day working capital facilities and provides further headroom as the business commences its next phase of growth. It has also provided a stable platform to explore further M&A opportunities.

Tom Cox, Partner at FRP Corporate Finance, said: “TDG continues to set the standard in SME e-commerce distribution services, leveraging a market leading tech-stack to deliver superior collection flexibility, at competitive prices. This upsized financing will allow the Group to continue to deliver on its business plan, opening new service channels such as medical distribution services, and exploit continuing growth in SME e-commerce in the UK and internationally”.

Jonathan Brod, Managing Partner at Next Wave Partners, added “Tom and his team at FRP have proven again to be excellent advisers, creating a financing package that aligns seamlessly with The Delivery Group’s plans. The Delivery Group is well-positioned to leverage growth opportunities organically and through strategic acquisitions. We are excited to continue to support The Delivery Group’s journey as they enter their next chapter.”

Michael Owen, Group CEO at The Delivery Group, said: “We were delighted to work with FRP Corporate Finance in securing this refinancing with our long-term funding partner, Praetura Commercial Finance. They fully understood our financing requirements and were able to structure a deal that gives us the flexibility to deliver on our exciting growth plan as a one-stop specialist e-commerce distribution business servicing the SME market.”

Stuart Bates, Commercial Director at Praetura Commercial Finance, said: “We’ve worked with Michael and the team for over 10 years and it’s been a real privilege to play a role in their journey. Praetura’s mission is to fund ambitious SMEs and help fuel their growth, this next chapter is sure to be another exciting expansion period for The Delivery Group.”