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Mar 28, 2024

Employees move for major logistics services firm

A rapidly growing logistics services provider has become employee-owned - the move makes the firm the biggest employee-owned company of its kind in the world. Launched in Eccles in 1998 with a £15,000

A rapidly growing logistics services provider has become employee-owned - the move makes the firm the biggest employee-owned company of its kind in the world.

Launched in Eccles in 1998 with a £15,000 business loan, Cardinal is now an international firm with more than 40 offices, 6,000 clients and revenues exceeding £500m. In the UK and Ireland the business has offices in Manchester, Basildon and Dublin.

The business topped Insider's latest OMB100 which ranks the top owner-managed firms in the North West.

Brian Hay, chief executive of The Cardinal Partnership, said: "Our decision to become an employee-owned business will be transformational. We believe that excellence and dedication should be rewarded, and we have some of the most talented operators in our industry.

"During our first 25 years as a business, we have been able to take the company from a £15,000 investment to one of the UK's most respected and sizable logistics businesses. Undoubtedly, this transition will allow us to take our business to the next level and I’m looking forward to what’s to come."

Cardinal worked with an investment banking company, Houlihan Lokey, to pursue a liquidity event for shareholders when establishing its employee ownership trust.

Gareth Owen, capital markets drector at Houlihan Lokey, said: "Cardinal is a high-quality logistics services provider, providing reliable, market-leading service to its clients on a global basis.

"The company is a great example of delivering strong growth whilst maintaining its core values. We have thoroughly enjoyed working closely with management on this transformational step in its history, and look forward to watching the next phase of their journey."

HSBC UK supported this deal with funding.

Leon Crook, relationship director at HSBC UK, said: "The success of Cardinal Maritime is testament to the culture of the business and the dedication of its staff.

"It's fantastic to support the next stage of growth for the organisation as it moves to an employee ownership model and we’re sure this move will support the future of Cardinal for many years to come."

Addleshaw Goddard advised HSBC on the deal, with the team advising on the transaction led by Richard Oman, Jennifer Hanson, Conor Morrissey and Ozayr Makda.

Richard Oman said: "Employee ownership models are becoming increasingly popular due to the benefits they bring to businesses and their staff.

"We were delighted to work with the team at HSBC on the funding of this fantastic deal and we wish Cardinal every success for the future."

A team from specialist business advisory firm FRP, led by partner Anthony Collier and director David Bonner, provided financial due diligence to HSBC on the transaction.

Anthony Collier, partner at FRP, said: “Employee ownership trusts have become an attractive succession tool for business owners and employees alike as they can help maintain a company’s culture while fostering greater engagement and productivity.

"Our team assessed all the relevant information that stakeholders needed to support their decision making, and we were proud to support Cardinal Global Logistics and HSBC with this transaction. Cardinal Global Logistics can now start a new chapter in their story with confidence, and I’m sure they have another 25 years of success ahead of them."

DWF's Corporate team advised the company and management team on the sale, led by global head of corporate Frank Shephard alongside senior associate Matt Judge and associate Eleanor Chatterton.

Tax advice was provided by global head of tax and private capital, Jon Stevens and trust advice by partner, Christopher Noel. Banking advice was provided by global head of finance and restructuring, Iain Shurwood alongside director Alexander Szehidewicz and solicitor Lindsay Marca.

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