Dart Group completes £98M sale of Fowler Welch

Dart Group, the listed company behind Jet2 and Jet2holidays, has completed the sale of its logistics and distribution business to Culina Group for £98m.

Fowler Welch provides food supply-chain services and serves retailers, processors, growers and importers through its distribution network.

The business also has a 50 per cent share in a joint venture fruit ripening and packing business, Integrated Service Solutions, located at its Teynham facility.

Fowler Welch reported revenue of £178.7m for the financial year ending 31 March 2019, together with a pre-tax profit of £4.3m.

The Dart Group board said the deal would enable it to focus on its long-term strategy of growing its Leisure Travel business and allow Fowler Welch to "continue to flourish and grow profitably under new ownership".

Last month (May 2020), the group raised about £172m through a placing to help deal with the impact of the Covid-19 outbreak. It has also recently received confirmation that it is eligible for up to £300m of funding under the Treasury and Bank of England's Covid Corporate Financing Facility.

Cenkos Securities is the nominated adviser to Dart Group with Canaccord Genuity and Arden Partners as joint brokers.

Source: Insider Media