Private equity takes big share of Driver Hire

The growing Bradford-based firm is a franchised provider of temporary and permanent staff to the logistics and distribution industries.

If organisations are short of staff – due to illness, holidays or seasonal demand – Driver Hire will supply a replacement.

LDC, based in Leeds, said it has invested an undisclosed sum for a significant shareholding. Debt funding was provided by Yorkshire Bank Corporate and Structured Finance.

The deal sees Spirit Capital, formerly known as Aberdeen Murray Johnstone Private Equity, exit the business, which it backed in 2004.

Chris Chidley, chief executive of Driver Hire, said: “Securing the financial backing and support of a proven investment partner such as LDC is a very positive endorsement for our business.

“Their scale, reach and expertise will provide us with the support to create further growth opportunities for the group. This is excellent news for our employees and our franchisees, all of whom will benefit directly from increased long-term investment in our business and our brand.”

John Swarbrick, a senior director at LDC, said: “Driver Hire is a robust business led by a proven management team. The commitment of its franchisees drives exceptional levels of customer service quality.

“Combined with its market leading training offering and significant industry and regulatory knowledge, this enables the business to provide a differentiated and value-added proposition to customers.”

He added: “We believe the company has numerous potential organic growth opportunities and so LDC is delighted to have the opportunity to back the team and provide them with the support to fulfil their ambitions for the business.”

Bradford-based Driver Hire, which was established in 1983, operates nationally through a 100-strong network of offices, predominantly owned and operated by franchisees. It supplies around 5,000 corporate customers with LGV, van, forklift truck and fleet car drivers, warehouse operatives and professional logistics managers on both a short-term and long-term basis.

The company said that major structural changes in the logistics sector, such as the increase in just-in-time manufacturing processes and the growth of home delivery from increasing online retail sales, are driving demand for short-term, temporary drivers.

In the last financial year, Driver Hire’s total turnover rose 22 per cent to £66.5m.

Announcing the company’s financial results in April, Mr Chidley told the Yorkshire Post that Driver Hire’s subsidiary, Driver Hire Training, had gone from strength to strength.

It has 113 trainers and 72 offices offering fully accredited courses.

Since its launch in 2010, Driver Hire Training has delivered 800 courses to around 6,500 drivers.

The company has also launched dh Logistics Appointments – a new permanent recruitment service for managerial staff.

Seventeen of the company’s 95 offices achieved increases in turnover of 50 per cent or more.

Over the last year, new offices have opened in Darlington, Leamington Spa, Twickenham and south east London.

The business was established in Shipley, near Bradford, in 1984 by John Bussey and Mark Lawn and opened its first franchise in Newcastle in 1987.

In January, Mr Chidley called on the Government to consider cutting tax on fuel to boost British business and the recruitment industry as a whole.

More than 100 delegates attended the company’s winter conference which was held at the Nottingham Belfry in January. At the conference, Mr Chidley revealed that the week running up to Christmas had been the second best in the company’s history.

A number of Yorkshire-based professional services firms advised on the latest buyout by LDC, which is part of the Lloyds Banking Group.

Yorkshire Bank led the debt provision, and was advised by Leeds-based law firm Walker Morris.

Advisors to LDC were law firm Squire Sanders Hammonds. Grant Thornton provided advisory and financial due diligence for LDC, while management and the sellers were advised by a team from law firm Cobbetts.

KPMG (tax) and Lincoln International (financial) also advised management.

The road to the top

The first Driver Hire office opened in West Yorkshire in 1983, initially supplying temporary drivers to local transport firms.

Since then it has grown to become the UK and Ireland’s largest specialist supplier of drivers and non-driving staff to the transport and logistics industry.

In 1987 the company started to offer franchise opportunities, with the first franchised office opening in Newcastle later that year. The business then grew rapidly, and the company now has a nationwide network of over 100 Driver Hire offices, most of which are owned and operated by franchisee business partners.

It offers a range of recruitment services, including temporary and permanent positions, driving work and logistics jobs.