An ecommerce and logistics firm has completed an investment in a Gatwick-based specialist air and sea freight forwarder.
Emerge Ecommerce Ltd has backed Seaspace International Forwarders Ltd, which was founded in 1988 and has operated successfully for more than 30 years.
It is now a respected freight forwarder and logistics provider across air freight, sea freight and fulfilment.
The majority shareholder, who has passed responsibility for running the business to the management team, will crystalise the value in the business his father established while retaining a sizeable interest as it enters a new phase of ownership.
The transaction follows Emerge’s acquisition of Berser International Cargo Services Ltd in September 2021, a freight forwarder located in Newcastle-under-Lyme.
Funding for both transactions was provided by a combination of debt facilities from Arbuthnot, which provided term loans and an invoice discounting facility, and MSIF, which facilitated a mezzanine facility.
The funding package also includes a major working capital injection to support future business growth. Financial details of the transaction are undisclosed.
Emerge’s management team has plans to grow the group’s existing revenue streams, as well as developing new services to existing and new customers.
Seaspace’s position and reputation in the air freight and sea freight forwarding market is seen as a key addition to the group’s freight forwarding operations.
Mark Bigley and Richard Harris, co-founders of Emerge Ecommerce, said: “We are delighted to have invested in Seaspace and Berser, both of which will assist the growth strategy for Emerge in the logistics market. We utilise our knowledge, experience and technology to provide insight and understanding to develop the process of moving items through the supply chain.
“It is exciting to see the plan we set in motion three years ago being realised, enabling SMEs to move anything from anywhere to anywhere around the world. Seaspace is a key piece of the jigsaw, extending our air and sea freight capability and firming up our e-commerce and retail B2B fulfilment proposition.
“Our shareholders are very supportive of the shared vision we have for the business and we have already embarked on a technology deployment that will enable us to increase capacity, with a view to achieving the next stage of growth.”
Deal advisory advice was provided by Paula McGrath, Dan Rice and Sean Gardner of Brabners Deal Advisory. They worked with Emerge to structure the transactions and raise a substantial financial package to support both deals.
Michael Murphy, corporate partner at Hill Dickinson, provided legal advice to the Emerge management team.
Legal advice for Arbuthnot and MSIF was provided by David Gledhill at Bermans and Denise Walker at Glenville Walker, respectively, and DSG Chartered Accountants provided financial due diligence support.
