City Link (acquired by Better Capital, 2013)
Siskin Parkway West
Tel: +44 8444 930 931
April - The UK express parcel company City Link had been sold to a private equity firm for £1. The deal had already been completed with Better Capital, a private equity company led by the well known financier Jon Moulton, taking control immediately.
A statement from RentoKil Initial plc, which previously owned City Link, said that the existing senior management team led by CEO David Smith would "continue to run the business". The statement continued "Better Capital would invest £40m in the business to provide more than sufficient funding required by City Link to complete its turn-around plan". However, "Rentokil Initial has retained certain parent company guarantees, including approximately £20m relating to leasehold properties".
RentoKil Initial had been struggling to make City Link profitable for several years with the express parcel carrier making an "adjusted loss" in 2012 of £26m.
The UK express market which City Link operated in was highly competitive with the company more heavily exposed to the slower growing 'business-to-business' segment rather the more cost sensitive 'business-to-consumer' sector which is expanding fast.
City Link Ltd provides express collection and delivery services across the UK, Ireland and Worldwide. It provides next day and timed delivery services worldwide, and also offers value added services. Other services include international, post, print logistics and sameday.
City Link is part of Rentokil Initial plc, which is a FTSE 100 Company with annual revenues in excess of £2.5bn.
In 2011, City Link Ltd had revenues of £306.9m.