Private equity group Palatine has taken a majority stake in logistics tech business fulfilmentcrowd as it looks to continue its growth at home and abroad.
The move means a partial exit for BGF, which invested in Chorley-based fulfilmentcrowd in 2021 and will reinvest to continue to hold a stake in the business alongside Palatine.
This is Palatine’s first investment from its recently-closed £254 million Buyout Fund V. Palatine says it wants to help fulfilmentcrowd find potential acquisition opportunities as well as continuing its growth in the 海角视频, Europe, Australia and the US
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Fulfilmentcrowd provides software to companies selling products online, allowing retailers to outsource their logistics and fulfilment process. It has recently launched an Asia-Pacific fulfilment hub in Sydney and a hub in Dublin, and will open more US sites this year.
In its accounts for the year to March 31, 2024, fulfilmentcrowd Ltd reported a turnover of £13.7m – up from £11.5m in 2023. It reported a pre-tax profit of £793,001, following a loss of £117,190 in 2023. The company says it expects that this year it will report revenue growth of 20%, and that more than 9m items were shipped through its platform last year. It employs more than 100 people.
Palatine's Tom Wildig and James Painter will join the fulfilmentcrowd board following the investment, whose value has not been disclosed, while a new debt facility from Thincats has also been agreed.
Tom Wildig, senior investment director at Palatine, said: "We are very excited to be backing this entrepreneurial management team at fulfilmentcrowd. They have done an excellent job in building a market-leading, asset-light tech company.
"Leveraging our experience in tech services alongside our sector-leading approach to ESG, we look forward to supporting CEO Lee Thompson and the rest of the team to accelerate growth and achieve their goal of becoming the world’s number one fulfilment platform for omnichannel brands."
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Lee Thompson, CEO of fulfilmentcrowdm said: “The fulfilmentcrowd platform enables ambitious omnichannel brands to simplify and scale their global logistics operations. We flex our technology, expertise and service delivery model to deliver solutions that create competitive advantage.
"In Palatine, we have found a genuine growth partner with the strategic expertise and positive approach to value creation that will help develop our entrepreneurial culture and drive sustainable growth over the coming years.”
BGF partner, Spencer Woods, added: “We’re proud to have supported fulfilmentcrowd through a sustained period of growth since our initial investment in 2021. We look forward to having an ongoing role alongside Palatine as the company continues to find new opportunities for international expansion.
“They have proven to be a highly scalable business, powered by strong management and award-winning technology. We’re excited to see the company embark on its next phase of growth as they build a truly global network for omnichannel brands, accelerated by sustained demand for their exceptional customer-focused fulfilment and logistics platform.”
Palatine was advised by Alvarez & Marsal (corporate finance) and by law firms Gateley (corporate) and Browne Jacobson (banking).
Clearwater (corporate finance) and Hill Dickinson advised the shareholders of fulfilmentcrowd, while the transaction was also supported by Crosslake (technical due diligence), RSM (financial due diligence) and Roland Berger (commercial due dilligence). BGF was advised by Squire Patton Boggs (legal).