Another big NI man bites the dust!!!
A little more detail as below - I cannot see him having many regrets
Acquisition of McBurney Transport Group
The Group has revenue of DKK 1.3bn and over 800 employees
Transaction enterprise value of DKK 1.2bn (GBP 138m)
Accretive for ROIC (vs 8% target) and earnings per share from closing
Financial leverage increase of 0.1x
DFDS has today entered into an agreement to acquire 100% of McBurney Transport Group headquartered in Northern Ireland. The company is focused on moving cold chain and dry goods in trailers by road and ferry between island of Ireland and the UK.
The majority of cold chain goods are moved for food producers and retailers requiring high reliability and efficiency. Warehousing, distribution, and other logistics services are also provided.
The acquisition of McBurney Transport Group is aligned with DFDS’ strategic focus on cold chain logistics, it overlaps with existing activities in the region, and offers opportunities to connect with other parts of DFDS’ pan-European transport network.
“The acquisition of McBurney Transport Group greatly enhances the scope of our customer offerings on the island of Ireland and in the UK, particularly towards the resilient food sector. It also brings considerable scale to our existing operations in the region”, says Torben Carlsen, CEO of DFDS.
“By becoming part of DFDS we gain access to new development opportunities. I am certain the wider market coverage, including access to DFDS’ extensive transport network, will benefit our many longstanding customers. I am confident that our many loyal and dedicated employees will be comfortable and happy after this transaction”, says Norman McBurney, OBE, founder of McBurney Transport Group.
About McBurney Transport Group (McBurney)
The core activity of McBurney is the transport of full and part-load trailers between island of Ireland and the UK by road and ferry. Most of the trailers are temperature-controlled units. McBurney annually transports more than 100k trailers across the Irish Sea.
McBurney is headquartered in Ballymena, Northern Ireland, and operates from eight different locations: three in Northern Ireland, one in Ireland, three in England and one in Scotland. In Liverpool, McBurney operates a 25,000-pallet cold store, which facilitates the transport of cold chain goods throughout the UK.
Operating under the name Bondelivery, McBurney also owns a 10,000 m2 ambient warehouse in Northern Ireland focused on fulfilment for the retail sector and last mile delivery on the island of Ireland.
McBurney is an asset-backed transport provider to ensure the reliability, flexibility, and efficiency required by food producers and the retail sector. The company has over 800 employees and operates around 400 trucks and 1,360 trailers of which 955 are refrigerated trailers. The majority of the equipment is owned.
In 2021, McBurney’s revenue was DKK 1.0bn and for 2022, revenue is expected to increase to DKK 1.3bn. The Group’s EBITDA was DKK 160m in 2021 (before adjusting for IFRS 16). McBurney was founded in 1965 by Norman McBurney, OBE.
Strategic fit
The acquisition is aligned with DFDS’ strategy of growing solutions within cold chain logistics. The acquisition also develops and expands DFDS’ transport network that is focused on moving goods in trailers by road, rail, and ferry.
McBurney will become part of the Logistics Division’s Cold Chain business unit. The integration of McBurney is expected to generate synergies. Expected synergies and an integration plan will be disclosed in connection with the closing of the transaction.
Transaction structure and financing
DFDS acquires McBurney for a debt-free price of DKK 1.2bn (GBP 138m). Existing cash funds will be used for the transaction payment.
The transaction is expected to increase DFDS’ financial leverage, NIBD/EBITDA, by 0.1x on a pro forma basis.
The transaction is expected to be ROIC accretive vs DFDS’ 8% minimum after tax return target and to be accretive to earnings per share (EPS) from closing.
Can’t see the A Team of a few select drivers being very happy about giving up “their” V8’s and 750 Volvo’s for a 450 MB . I’d expect a few drivers to be leaving as soon as the changes kick in .
140 million is hardly biting the dust - fair play to him - he started in 1965 and has built a good sized business , I think Norman McBurney has seen the future and has decided to go while the going is good .
I thought DFDS went ■■■■ up? - or am I confusing that outfit with DFS?
They both involve businesses that have their customers sitting on their arses for hours on end,after all…
beefy4605:
Can’t see the A Team of a few select drivers being very happy about giving up “their” V8’s and 750 Volvo’s for a 450 MB . I’d expect a few drivers to be leaving as soon as the changes kick in .
Came here to post that I suspect that some of their drivers will be shown the door and others will willingly walk out of it. Going to make the A66 and M6 in ■■■■■■■ safer roads if they do end up in the usual DFDS fleet with driver monitoring.
For various reasons this news has made my precarious looking job a little more secure!
Conor:
beefy4605:
Can’t see the A Team of a few select drivers being very happy about giving up “their” V8’s and 750 Volvo’s for a 450 MB . I’d expect a few drivers to be leaving as soon as the changes kick in .Came here to post that I suspect that some of their drivers will be shown the door and others will willingly walk out of it. Going to make the A66 and M6 in ■■■■■■■ safer roads if they do end up in the usual DFDS fleet with driver monitoring.
The drivers are left alone not overly monitored or interfered with
beefy4605:
Can’t see the A Team of a few select drivers being very happy about giving up “their” V8’s and 750 Volvo’s for a 450 MB . I’d expect a few drivers to be leaving as soon as the changes kick in .
DFDS honour the existing truck orders that why you are seeing a few new Mercs on the fleet . They are a Volvo fleet normally so will be replaced in time with 460 fairly well speccced Volvo
beefy4605:
Can’t see the A Team of a few select drivers being very happy about giving up “their” V8’s and 750 Volvo’s for a 450 MB . I’d expect a few drivers to be leaving as soon as the changes kick in .
Doubt it NI isn’t exactly overflowing with job opportunities.
beefy4605:
140 million is hardly biting the dust - fair play to him - he started in 1965 and has built a good sized business , I think Norman McBurney has seen the future and has decided to go while the going is good .
I remember talking to one of their drivers collecting a load from Bushmills distillery a few years ago when I was visiting on holiday, he was very happy with his lot in life.
Gavv8:
beefy4605:
140 million is hardly biting the dust - fair play to him - he started in 1965 and has built a good sized business , I think Norman McBurney has seen the future and has decided to go while the going is good .I remember talking to one of their drivers collecting a load from Bushmills distillery a few years ago when I was visiting on holiday, he was very happy with his lot in life.
Just a few miles from where I live - we also do work out of Bushmills distillery . No one is allowed to be a grumpy child in front of the visitors in Bushmils 
Gavv8:
beefy4605:
Can’t see the A Team of a few select drivers being very happy about giving up “their” V8’s and 750 Volvo’s for a 450 MB . I’d expect a few drivers to be leaving as soon as the changes kick in .Doubt it NI isn’t exactly overflowing with job opportunities.
Plenty of opportunities for good , clean , keep your truck tidy and get the work done kind of drivers . Ask Conor - he loves to see us coming down the M6 and over the A66 . When good drivers are on the hunt for jobs in N.I - the layabouts and feet draggers suddenly find they aren’t welcome anymore .
beefy4605:
Gavv8:
beefy4605:
140 million is hardly biting the dust - fair play to him - he started in 1965 and has built a good sized business , I think Norman McBurney has seen the future and has decided to go while the going is good .I remember talking to one of their drivers collecting a load from Bushmills distillery a few years ago when I was visiting on holiday, he was very happy with his lot in life.
Just a few miles from where I live - we also do work out of Bushmills distillery . No one is allowed to be a grumpy child in front of the visitors in Bushmils
Lovely part of the world, I hope to come back again soon.
beefy4605:
Gavv8:
beefy4605:
Can’t see the A Team of a few select drivers being very happy about giving up “their” V8’s and 750 Volvo’s for a 450 MB . I’d expect a few drivers to be leaving as soon as the changes kick in .Doubt it NI isn’t exactly overflowing with job opportunities.
Plenty of opportunities for good , clean , keep your truck tidy and get the work done kind of drivers . Ask Conor - he loves to see us coming down the M6 and over the A66 . When good drivers are on the hunt for jobs in N.I - the layabouts and feet draggers suddenly find they aren’t welcome anymore .
100% correct, NI is a small place regarding good drivers and you normally find if a good reliable well known driver becomes available then companies can’t wait to get them in their lorries. Word of mouth goes a long way in NI when it comes to good drivers.
Obviously a bit to much for the blue to pay.
Conor:
beefy4605:
Can’t see the A Team of a few select drivers being very happy about giving up “their” V8’s and 750 Volvo’s for a 450 MB . I’d expect a few drivers to be leaving as soon as the changes kick in .Came here to post that I suspect that some of their drivers will be shown the door and others will willingly walk out of it. Going to make the A66 and M6 in ■■■■■■■ safer roads if they do end up in the usual DFDS fleet with driver monitoring.
And hopefully my colleagues and I will stop getting verbally abused for doing our jobs.