News / After a successful IPO, Delamode gets back on the acquisition trail

Delamode has three acquisition targets in its sights, following its Initial Public Offering (IPO).

Chief executive Stephen Blyth has described the share sale as a “complete success”.

He told The Loadstar Friday’s IPO had provided the necessary backing to pursue its planned mergers and acquisitions strategy.

“We want to grow organically. We will need to maintain existing service levels first, but the idea is that bolt-on acquisitions will help this growth,” said Mr Blyth.

The company is already undertaking due diligence on two freight forwarding companies in Europe, and alongside its road network, Mr Blyth said the UK forwarder and groupage operator was looking to develop an air and sea business.

“This would initially be a UK-based operation, but as our other networks grow we would look beyond, perhaps towards the Baltic states,” he said.

“And if something in western Europe popped up that matched our business model, we would also be open to developing it, although this would be more for the mid-to-long-term agenda.”

After generating revenue of £76.3m last year, in February the group announced the acquisition of Lithuania-based e-commerce delivery provider PirkAnglijoje, when marketing manager Dave Gladen told The Loadstar he hoped the deal would create “a snowball effect” as Delamode looked to further extend its coverage.

Mr Gladen added that the deal would expand online delivery service EshopWedrop in Eastern Europe and the company would be looking to franchise the business model.

Mr Blyth said the acquisition of PirkAnglijoje had “gone well” and although franchisees hadn’t yet been added, draft arrangements were in place and ready to go.

“Our initial plan had been to franchise the business within two to three months of the acquisition, but this was slightly delayed by the IPO,” he added. “Now, with everything in place for the first franchises, we are excited to see how this could go and look to expand it further across the Baltics.”

Under the franchise agreement, Delamode would supply drop boxes and international transport with the partner companies supplying the last-mile logistics.

Mr Blyth said the company had already opened collection points in Germany, Italy and Poland and was looking at the same in France, Spain, and the US by the end of the year.

“We have volumes of around 40,000 pallets a month at our Pall-Ex operation in Romania, and have added a new warehouse to accommodate these volumes in Bucharest,” he said.

“This should be 90% full by the end of the year; so, all-in-all, business is going nicely”