CitySprint, a same day distribution company, has announced the completion of a major new round of investment that will accelerate the next stage of its growth. Lloyds Development Capital (LDC) has bought a stake in CitySprint in a deal which values the business at £175m. It joins existing shareholder Dunedin, which has retained an equity stake in the business. The CitySprint management team remain the major shareholder. The transaction provides significant new capital for the next stage in CitySprint’s journey and cements its position in the growing £1.7 billion same day market.
CitySprint has also announced the creation of a new division – LastMileLink Technologies – a dedicated technology ‘hothouse’ which will accelerate the development of innovative new products for CitySprint and improve the delivery platform infrastructure. LastMileLink Technologies will benefit from the continuing programme of investment planned for the business.
Patrick Gallagher, CEO of CitySprint, said: “We have a really strong partnership with Dunedin and LDC is joining us, as a key strategic investor, at a very exciting time in our business as we capitalise on our first mover advantage in the same day market. We are perfectly placed to take advantage of the increasing demand for same day and specified hour fulfilment. This is being driven by consumers seeking confidence and convenience and from a growing number of retailers looking to outmanoeuvre their competitors.”
CitySprint has over 3,000 couriers and 40 service centres. In 2015 it launched On the dot, a retail and consumer delivery service, backed by market-leading technology, allowing shoppers to choose a one-hour delivery window. In 2015 CitySprint generated £146 million in revenue, up 14 per cent on 2014, underlying EBITDA of £16.8 million.
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