A former manager at a Goole-based port operator has rejoined the company’s board after leading a secondary buy-out.
A former manager at a Goole-based port operator has rejoined the company’s board after leading a secondary buy-out.
Peter Aarosin returns to shipping and cargo handling group RMS Europe as chief executive following the £21 million deal.
Aarosin, who is also managing director of Danbrit Shipping in Hull, sold RMS in 2004 following a £13 million management buy-out.
RMS was sold by Aberdeen Asset Managers Growth Capital, which backed the original buy-out. The firm made a return of more than two times its investment.
Aarosin heads up a new management team that includes major RMS shareholders Paul Crossland, David Johnson, Gary O’Malley and Mike Kirby.
Aarosin told reporters: “The activities of RMS Europe are firmly rooted on the UK’s busiest trading estuary, the Humber.
“It presented an exciting opportunity for me to work with a great management team and to grow the business organically and by acquisition, with the existing management team and develop the company further,” he added.
This latest deal was backed by YFM and PIF, with YFM investment manager Nigel Barraclough saying that the ports sector remains strong. “The increasing cost per mile of road haulage puts inland ports like Goole and the Trent ports at a distinct advantage.
“Peter Aarosin is heading up an exceptionally strong management team in the secondary buy-out of RMS, a team which we have known over the years to be very good,” he added.
This was PIF’s biggest single deal with £1.5 million of funding forming part of the £4 million of investment from several of the funds managed by YFM Group, which includes the Chandos Fund and the British Smaller Companies VCTs.
PIF investment manager Andy Wright said: “The £1.5 million investment is the largest single investment we have made, and shows the faith which we have in the strength of the business and the management team. This is a significant development for the region and a great opportunity for PIF to become involved in an established business with excellent growth prospects.”
Aarosin’s team and RMS were advised by Jeremy Allison and Peter Duffield of Smailes Goldie, which has been the group’s auditor and tax adviser for the past five years.
Duffield, who also advised on the 2004 buy-out as an adviser to the then vendors, said: “The transaction was notable for the practical approach of all the parties involved – there was a genuine desire by all to do the deal without the hullabaloo that often accompanies this type of transaction.
“The group is well placed for controlled expansion in the years ahead, with the existing operations providing a sound strategic base from which to capitalise on new opportunities,” he added.
RMS operates the Boothferry Container Terminal and the Covered Steel Terminal at the Port of Goole. It also owns the ports of Flixborough and Gunness on the river Trent and also offers shipping and cargo handling services.
