H.I.G. Capital Acquires DX Group plc

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Simon Harper ‘An amazing turnaround.’

Paul Ibbetson, ‘Entire management team and I welcome HIG.’

Simon Harper, Operations Change Director at DX, ‘After an amazing turnaround, transformation & re-invention over the past 6 years, our journey at DX Network Services enters a new and exciting phase under new ownership of H.I.G. Capital..... Onwards !

Earlier this week, H.I.G. Capital (“H.I.G.”), an alternative asset investment firm with $60 billion of capital under management, was pleased to announce that one of its affiliates has completed the public-to-private acquisition of DX Group plc (“DX” or the “Company”), previously listed on the London Stock Exchange’s AIM market, for an aggregate consideration of £307 million.

Paul Ibbetson, CEO of DX: “It is with great pride and enthusiasm that the entire management team, and I welcome H.I.G. as our new partner. I am very excited to work with the team at H.I.G. to capitalise on the enormous potential we have within the UK and Ireland. We are well positioned to continue pushing forward with our plans for growth and to further capitalize on our leading position in the IDW segment, with additional significant opportunities in our 2-Man, Logistics and Express Parcels divisions.”

Based in Slough, with a reputation for large parcel movement, DX is a provider of a range of specialist delivery services to both business and residential addresses across the United Kingdom and Ireland. The Company is engaged in the provision of last mile delivery solutions, including parcel, freight, secure, courier, and logistics services.

Tobias Borkowski, Managing Director on the H.I.G. Europe Private Equity team, commented: “We have been impressed with DX’s growth trajectory underpinned by the supportive market trends, as well as the Company’s commitment to high customer service levels. We believe H.I.G. is the ideal partner to support the management team in the next phase of its growth.”

Markus Noe-Nordberg, Managing Director and Head of the H.I.G. Europe Middle Market Private Equity team, said: “We are delighted to have the opportunity to invest in DX. H.I.G. has had great success investing in logistics businesses, and we will use this experience to help the management team accelerate the expansion of the Company.”

DX was first established in 1975 as a Document Exchange service to the legal sector, DX provides a wide range of overnight delivery services with a strong focus on irregular large parcels. The Company operates through two divisions, DX Freight and DX Express: DX Freight comprises DX 1-Man and 2-Man/Logistics, with the division being one of only a small number of operators that provides an overnight delivery service for irregular dimension and weight freight (“IDW”). DX Express comprises DX Parcels and DX Exchange and Mail, with the division specialising in the delivery of high-value, time-sensitive parcels and documents.

H.I.G. Capital is a leading global alternative investment firm with $60 billion of capital under management. Based in Miami, affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, and Dubai, H.I.G. specializes in providing both debt and equity capital to mid-sized companies. H.I.G.’s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The Firm’s current portfolio includes more than 100 companies with combined sales in excess of $53 billion.