DX Group, the UK and Ireland’s largest independent mail and courier company, has agreed to a capital refinancing and a management buy-in led by Petar Cvetkovic and David Hoare.
DX Group’s main shareholder, the private equity house Candover Partners, as manager of the Candover 2005 Fund, is to inject fresh equity of GBP15m.
Cvetkovic and Hoare are respectively the former chief executive and chairman of Target Express, the express delivery business.
Effective from 12 April, current chairman David Mitchell will hand over the reins to Hoare. Chief executive John Coghlan will resume his previous position of non-executive director and hand over to Cvetkovic.
Coghlan says: “Petar and David bring to the management team a huge amount of experience and we are delighted to welcome them to the DX Group board. DX Group has weathered an unprecedentedly tough trading period over the last 18 months, but has remained profitable and cash-generative. Now, with the support of Candover and our banking group, we have a strengthened balance sheet and the freedom to push ahead.”
Mark Dickinson, director of Candover, says: “We are extremely grateful to David Mitchell, John Coghlan and their team for steering DX through a very difficult economic period and maintaining both market share and profitability. The refinancing is a very positive outcome for both DX Group and Candover, and we’re delighted to back the management with further fresh capital. In welcoming David and Petar to the board, DX is now well placed to exploit the long term opportunities present in this sector.”
