Harrowells assists in haulage company acquisition

A North Yorkshire transport company, which is among only a handful in Yorkshire to have British Retail Consortium (BRC) accreditation, has acquired a York haulage business as part of its growth and service strategy.

TEF Transport, Scarborough, has bought Millfield Haulage, Nether Poppleton, for a significant but undisclosed sum adding clients, staff and storage capacity to its UK-wide operation.

TEF Transport owners, Andy and Linda Mclaughlin, were advised by North Yorkshire accountants and business advisers, JWP Creers, with legal support from the commercial team at Harrowells Solicitors, York, in the deal funded by HSBC.

Founded in 1975, TEF Transport had only three vehicles and trailers when it was acquired by Andy Mclaughlin, a former driver and transport manager at the company, and his wife Linda, who was previously with Yorkshire Bank in York, in 2005. Now the business has 40 vehicles, 60 trailers and a multi-million pound, purpose-built logistics depot, with a 50,000 sq ft warehouse, built in 2008. The quality of the warehouse and fleet helped the business gain BRC accreditation.

TEF, which has 65 staff and a £6m turnover, supports manufacturers, including market leaders, McCain Foods and Pindar Print, Scarborough and Rolawn Turf, York, as well as smaller operations and is also a member shareholder of the Palletforce pallet network which delivers smaller consignments throughout the UK and into Europe.

Millfield Haulage, which was offered for sale due to the retirement of the previous owner, has 20 staff, a 40,000 sq ft warehouse and an annual turnover of around £2m.  

Andy Mclaughlin says: “The two companies have a lot in common, including some shared customers. Although, in haulage terms, York is quite close to Scarborough, Millfield will bring massive benefits to our operation in terms of vehicle utilisation, reducing empty running for vehicles and additional warehousing.

“Millfield Haulage will also give TEF added flexibility and volume to ensure we continue to give our customers the first class service that we have become known for during the last 10 years. It will also ensure future growth as we add additional clients to our portfolio. Our plan is to double the fleet in York during the next 18 months.

“JWP Creers and Harrowells were extremely helpful and professional in the smooth running of the transaction. We have worked with both firms in the past and have a very good relationship with them.”

Two other TEF Transport directors, Dave Beckett and Marc Crosbie, have also acquired small stakes in Millfield Haulage.

JWP Creers corporate finance partner, Tony Farmer, who worked on the deal with corporate finance manager, Nick Barker, says: “TEF is a very well-run, fast growing business and this acquisition will see it go from strength to strength.”

Harrowells partner, Philip Lewis Ogden, says: “Efficient transportation is crucial to delivering economic growth and we’re pleased that TEF is continuing to expand.”

HSBC’s corporate relationship director in York, Mike Craft, added: “HSBC is keen to support ambitious businesses like TEF Transport. I am pleased we have been able finance its acquisition of Millfield Haulage and look forward to working closely with the company as it grows.”