A Scottish logistics company has been acquired in a private equity-backed management buyout.
Bullet Express, described as one of the UK’s fastest-developing distribution and storage businesses, has been acquired in the MBO led by John McKail, the company’s managing director.
The multi-million-pound move is backed by equity partners Panoramic Growth Equity and Maven Capital Partners.
The company’s founders, cousins David McCutcheon and Gary Smith, will step down from the board and assume advisory roles, to support the senior leadership team with business transition.
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Maven’s partner, London-based Emerald Capital, was instrumental in the MBO discussions from the outset and will support ongoing developments.
Both will retain some shareholding in the business, set up more than 30 years ago and now operating a fleet of 144 trucks and trailers and employing 160.
John McKail will become group chief executive and shareholder, supported by the existing directors, Bridget Mackay, William Herron and Martin Craghill, all of whom have played an active role in the success of the MBO and remain important stakeholders.
The investors will not play any part in the day-to-day running of Bullet Express which will be managed by Mr McKail and his wider team on a "business as usual" basis.
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Mr McKail said: "This is a significant milestone for our business. Bullet has achieved so much and our founders, David McCutcheon and Gary Smith, can be extremely proud of the fantastic organisation they have built, employing many of the best people in our sector.
"This is a fantastic opportunity for Bullet Express employees, customers and suppliers alike, to be part of one of the most exciting developments in our sector, now and into the future."
In a joint statement, Mr McCutcheon and Mr Smith, said: "This has been our life’s work. To witness the growth and evolution of Bullet has been the most fulfilling experience.
"From one vehicle back in 1990, to the leading market brand we are today, employing 160 people is quite remarkable. We remain invested and now hand over the baton to John and his team, supremely confident that Bullet is in safe hands for the next chapter of its growth story."
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The Glasgow-based business posted turnover of £19.2m for the period to March 2022, against £18m the year before.
Malcolm Kpedekpo, partner at Panoramic, said: "Building on the strong platform developed by the founders, the business is poised to continue its growth both organically and through acquisitions.
Ewan MacKinnon, partner at Maven, said the move "represents an attractive opportunity", while Michael Schmitz at Emerald, said the firm is "well-placed to build on the strong foundations" already established.
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