Agathos acquires Cargostore Friday, December 16th, 2016
Agathos Management LLP has taken a majority shareholding in global shipping container provider, Cargostore Worldwide Trading Limited.
Founded in 1993, London-based Cargostore is one of the world’s leading suppliers and operators of a fleet of container equipment to a diversity of global user markets. As well as supplying ISO9001 dry and refrigerated containers for sale and hire globally to customers with complex or hard to service requirements, Cargostore has a large range of specialist DNV rated offshore containers to service the offshore energy sector
The acquisition and restructure of Cargostore Worldwide Trading Limited was a highly complex deal, involving 5 different banks financing the containers, complex lease agreements and multiple counterparties. Between the various advisers, banks, lawyers and interested parties there were over 40 people directly involved in this complex deal, with many more no doubt helping in the background. We would particularly like to thank the team at Investec for their assistance.
Albert Farrant led the deal for Agathos, with assistance from lead analyst Daniel Knight, Vicki Conway, Lyndsey Harding, Jim Bastin, Charles Richards and Simon Danielli, and overseen by Managing Partner William de Laszlo.
Albert Farrant, Investment Director for Agathos commented:
“We are very pleased to have been able to successfully execute a complex financial restructure in order to recapitalise Cargostore. This was a classic opportunity for Agathos where balance sheet challenges as well as some turbulence in its core markets was constraining a business with strong underlying fundamentals and strategic value. Removing the balance sheet constraints should allow Cargostore to service its customers more effectively and achieve stable growth for many years to come.”
Agathos are backing the incumbent management team to lead the business going forward, particuarly the Managing Director Justin Farrington Smith, Jacob Poot who runs the offshore division and Keith Beton, non-executive co-founder of the business. They will be joined by new Chairman Peter Williamson, a former partner at Better Capital and highly experienced chairman in businesses undergoing transformation or rapid growth.
Justin Farrington-Smith, MD of Cargostore said:
“In the face of challenging market conditions globally, Cargostore has continued to expand both in terms of new product and service development as well as its reach to new markets through geographical expansion of operations.
“The very welcome engagement of interest and subsequent investment in our business by Agathos has come at an opportune moment as we prepare to engage in a new term of further strategic growth over the next five years. Agathos’ belief and support brings enormous benefit also to our valued employees and customer base.
“We could not better Agathos as both stakeholder and investor in this company and I am delighted to be working with the team at Agathos.”
The incoming Chairman of Cargostore, Peter Williamson commented as follows on the deal:
“I am delighted to have the opportunity to work with Cargostore and Agathos to realise the undoubted potential of the excellent team at Cargostore.”
Cargostore specializes in the sale, rental, storage and distribution of containers, with services ranging from intermodal shipping to UK domestic market sales of used containers for personal or small business storage use. Cargostore is also one of the world’s fastest-growing specialist suppliers of DNV Offshore carrying units to the international energy sector.
The company maintains one of the largest ranges of container types available; in addition to standard dry cargo units, Cargostore offers pallet-wide, side and double-door units, open tops, flat racks, bulkers, ISO tanks and temperature-controlled refrigerated units.
If you are looking to rent or purchase a container please do get in touch with the team at Cargostore by calling 08008620388.
We look forward to working with management to help Cargostore achieve its full growth potential.