Logistics firm to acquire Magnus Group warehousing operation
Wed, 29 Nov 2023 | BUSINESS SALE
Hemisphere Freight Services (HFS), a family-owned logistics company, has agreed to acquire the warehousing and freight forwarding operations of Suffolk-based Magnus Group, which has fallen into administration.
The agreement will aim to ensure minimal disruption for Magnus’ clients and to provide continuous employment for the operational staff of the group’s warehousing and freight forwarding divisions. The deal will also see HFS take on approximately 200,000 sq ft of warehousing space at Magnus’ Great Blakenham facility.
Commenting on Magnus’ struggles, Hemisphere Managing Director Andy Perrin said: "This is a sad reflection of the current state of the industry and economic conditions, and our offer to acquire the warehousing and forwarding elements of the business was, above all else, an attempt to safeguard the employment and ensure the wellbeing of as many of Magnus Group’s team members as possible - particularly in the run-up to Christmas, when many households are feeling the strain."
Founded in 1973, Magnus Group had established itself as a major haulage firm. The company, which had a fleet of more than 100 trailers and nearly 90 heavy goods vehicles (HGVs), had three sites, with a main hub at Addison Way, Great Blakenham and two spots at Hadleigh’s Lady Lane Industrial Estate. Prior to its collapse, the company was also a long-time sponsor of the main stand at Ipswich Town Football Club’s Portman Road stadium.
However, after filing a notice of intention to appoint administrators on November 10, the company fell into administration last week, with Andrew Kelsall and Lee Green of Larking Gowen appointed as joint administrators.
After liaising with directors, the joint administrators contacted interested parties in an effort to secure a sale of the whole or part of the business. The sale to Hemisphere was agreed on November 27, but buyers could not be found for other parts of the business, resulting in a large number of dismissals.
Find out more about M&A in the logistics sector[1]
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- ^ Find out more about M&A in the logistics sector (www.business-sale.com)