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Fund backs Buy-Out team at Transtar

Published: 25th July 2002

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On the road: Transtar management celebrate buyout - left to right - Transtar directors Lee Bolsover and Jayne Wilkinson and South Yorkshire Investment Fund Ltd chief executive Tony Goulbourn

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Driving force: South Yorkshire Investment Fund Ltd chief executive Tony Goulbourn celebrates Transtar's buyout with directors Lee Bolsover and Jayne Wilkinson

Transtar, the specialist independent freight forwarding company, has been acquired by its management in a deal backed by a £500,000 investment from South Yorkshire Investment Fund Ltd.

Lee Bolsover and Jayne Wilkinson who have worked in senior managerial positions at the Sheffield-based company for more than ten years, have bought the business from the founder, safe-guarding 13 jobs in South Yorkshire.

Joining the duo as a non-executive director is Kevin Gregory, who will provide financial and strategic guidance to the team. Mr Gregory is a partner at South Yorkshire chartered accountants Hawsons where he is responsible for the firm's corporate finance services.

Mr Bolsover said: "Transtar has been a consistently profitable business for several years now and has the capacity to grow turnover further over the next couple of years. Jayne and I are committed to further establishing the business as a premier freight forwarder in the region and further growing sales.

"The deal is very important to the region because if a sale to the MBO team had failed it is likely that Transtar would have been sold to an outside competitor and that might have meant that the business would have been lost to the South Yorkshire area.

"We are committed to providing a local service to local exporters in and around the South Yorkshire region. It frustrates us when business is lost to operators outside the area, but we will continue in our aim to provide a competitive, flexible and value for money service."

The company offers a wide range of freight forwarding services including air, sea, TIR, courier import and export, marine insurance and storage and distribution. Key suppliers include DHL/UPS, AirMenzies and several major airlines and shipping companies

The deal was financed through a mix of loans and equity supported by a facility from Royal Bank of Scotland.

The Fund provides development and risk capital ranging from £15,000 to £500,000 to businesses in, or prepared to relocate to, South Yorkshire. A unique feature of the Fund is its Mentorbank project, which provides subsidised mentoring support to help management teams grow their businesses more profitably.

Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd said: "The Fund was very keen to support the management team in the acquisition of Transtar. They have an enviable understanding of their marketplace and have already proved that they can grow a successful business.

"Jayne Wilkinson and Lee Bolsover backed by an experienced and committed team, have built up a strong and loyal client base and have several exciting initiatives planned for the future development of the business. This is just the sort the Fund is seeking to support in South Yorkshire. We are also delighted to be able to introduce a non-executive director like Kevin Gregory with a skill set identified by the MBO team as crucial to continued growth."

The management team at Transtar were advised by lawyers Hartley Linfoot & Whitlam and accountancy firm Hawsons. The Fund was advised by the law firm Keeble Hawson.

South Yorkshire Investment Fund exists to provide commercial support through critical stages of growing a business. From start up through to major expansion, the Fund will provide financial support. If a business is looking to start up, invest in new technology or equipment, enter new markets or relocate into South Yorkshire it should call South Yorkshire Investment Fund first.

Editor's Notes

About South Yorkshire Investment Fund

South Yorkshire Investment Fund  provided seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.

Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.

South Yorkshire Investment Fund also provided access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.

Finance Yorkshire has now taken on responsibility for providing gap finance in Yorkshire and the Humber.

For further details please contact Suzanne Tinkler,  on 0845 649 0000.

South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).