News

Acquisition-hungry Hargreaves Transport Services has bought Stockon-on-Tees business Stiller Tankers for an undisclosed sum, Roadtransport.com can reveal.

Hargreaves, particularly its transport arm, has grown through an aggressive policy of acquisition over the last few years which has seen it become one of the largest specialist hauliers in the UK.

The takeover of Stiller Tankers, which handles both bulk liquid and  powder transport, will add to Hargreaves' existing tanker business, Imperial Tankers, which will relocate to Stiller's site on Boeing Way in Stockon.

Mark Forrest, managing director of Hargreaves Transport Services, says the deal was based on a "mutual conversation" and had been in development since the beginning of the year.

He adds: "From my perspective, Imperial Tankers operates very much in the same field [as Stiller], often with the same customers, and I could see the benefit of expanding Imperial.

"It was done to scale the business up a little and get some synergies out of the business and consolidate our position in the market."

Stiller is half the size of Imperial with a turnover of £11m, which generated pre-tax profits of £281,000 in its latest accounts for the year to 31 December 2008. In contrast, Imperial Tankers generated a pre-tax profit of £1.4m on turnover of £19.5m in the year to 31 May 2008.

Forrest says that although he cannot  rule out redundancies, "the vast majority of the 140 employees will remain with the business".

Although the acquisition is for an undisclosed sum, Forrest reveals it has been part-funded by the sale of Imperial’s Billingham site to Paul Stiller. Forrest adds: "Our ambition is to be considered as the bulk haulier. There’s some very, very good competition out there and we are looking to be considered amongst the best."

The deal creates a combined fleet of 260 trucks and 460 trailers in the tanker division.

Stiller Group has struggled financially recently and put loss-making subsidiary Stiller Transport into liquidation in May. The deal is believed to be part of a wider restructuring programme and allows Stiller to retain its warehousing and transport business which includes membership of pallet network Palletline.

Paul Stiller, MD of Stiller Tankers, says: "Both parties are determined to implement a transition which will ensure the absorption of the Stiller Tankers business into Imperial Tankers will be as seamless as possible."