Deal delivers new business for Pacifica Group
FAST-growing electrical repair, warranty and servicing company Pacifica Group has preserved almost 60 jobs and expanded its operations with the acquisition of a home delivery specialist.
County Durham-based Pacifica has bought West Yorkshire’s Hi Way Express Home Delivery from the administrators of Hi Group which will help the North East company close in on its £20m annual turnover target for this year.
Pacifica Group already operates a nationwide electrical appliance repair service under the 0800 Repair banner, as well as a series of support services including warranty and servicing.
It was named Fastest Growing Company of the Year in the Fastest 50 Awards in the North East in 2011 for its rapid and sustained expansion.
The acquisition of Normanton-based Hi Way Express Home Delivery will enable Pacifica to add next-day appliance delivery to its raft of services supplied to appliance manufacturers, retailers and online sellers.
It also preserves the jobs of 56 staff directly employed by Hi Way Express Home Delivery and another 120 to 130 sub-contractors who carry out deliveries for the business.
Kevin Brown, managing director of Pacifica Group, said: “This is a great acquisition for our business as it complements the services we currently offer and gives us nationwide, seven-days-a-week coverage.
“We have been looking at the business for some time – I have known the MD at Hi Way Express Home Delivery for over seven years and Pacifica have used the company’s services for a number of years – so when this opportunity arose, we wanted to take advantage of it.
“With the additional revenue and further organic growth this will generate for the business, we are looking at turnover of around £20m in the year to the end of March 2013 and up to £25m in the year to the end of March 2014.”
Hi Way Express Home Delivery currently operates a fleet of 55 home delivery vehicles which make a total of between 700 and 800 deliveries a day.
The company’s current clients include a range of manufacturers, retailers and e-commerce businesses supplying goods ranging from domestic electrical appliances to nursery equipment.
Pacifica, which is based in Chester-le-Street, says the acquisition of Hi Way Express Home Delivery will enable it to provide a complete after-sales service to clients.
Kevin Brown said: “We can now offer everything from the moment a customer places an order – delivery to their door, warranty and service and repair should the appliance break down.
Leading North law firm Ward Hadaway provided legal advice to Pacifica on the acquisition.
The firm’s team was led by Corporate Recovery Partner Jim James and Pacifica Client Partner Mark Whitehead with support from solicitors Gemma Wood and Phil Kreczak.
Mark Whitehead said: “We are delighted to have helped Pacifica on this important strategic acquisition for the group.
“Kevin and the team at Pacifica have built up a fantastic business which is already growing at a rapid rate and the addition of Hi Way Express Home Delivery looks set to accelerate this still further.”
Kevin Brown said: “Ward Hadaway did a great job on the deal, enabling it to be completed in a very timely fashion and with the minimum of fuss.”
Tait Walker provided financial advice to Pacifica Group with RBS providing funding for the acquisition.
Administrators Ernst & Young acted for Hi Group with DLA Piper providing legal advice.
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