A major cold storage business with operations across the North has extended its footprint with an East Anglian acquisition.
The Ice Co Storage and Logistics - the distribution arm of Hull-based J Marr Group - is headquartered in West Yorkshire, with further sites in Preston and Newcastle. It has bought Savage Haulage Ltd in a multi-million pound deal.
It is described as one of the largest temperature-controlled storage and logistics businesses in its region, with sites in March, Cambridgeshire, and Thetford, Norfolk. The £5.9 million turnover company has been a family business for 60 years run by brothers Martyn and John Savage.
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Paul Martin, managing director of The Ice Co Storage & Logistics, said: “The acquisition of Savage Haulage provides us with greater geographic reach and capacity and allows us to benefit from greater economies of scale in the face of inflationary pressures which are eroding margins across the haulage and cold storage industry. Combining operations puts us on a firm footing for growth in the years ahead.”
The Ice Co operates blast freezing and tempering services with a 51,000 pallet capacity, and has operations dating back to 1908, established to support the fishing fleet. Initially it was in Fylde, then Newark, with a game-changing acquisition of a site at South Kirkby, between Doncaster and Wakefield in 2006.
Martyn Savage, joint managing director of Savage Haulage, said: “The Ice Co Storage and Logistics is a family company with the same values and ethics as ourselves. They are committed to continuing the existing operations, retaining existing personnel in the same positions and creating further opportunities in East Anglia as they take the business forward.”
Savage had appointed accountancy firm Price Bailey and Tees Law, having agreed a sales mandate as part of exit plans for the brothers, with The Ice Co Storage adn Logistics emerging as preferred buyer after discussions with a range of trade operators and private equity houses.
Stephen Reed, partner at Price Bailey, said: “The distribution and storage sector is highly fragmented with many owner-managed SME operators. Consolidation is occurring as operators seek to grow through acquisition and reduce unit costs through economies of scale and other operational efficiencies by combining resources and extending the range of services offered to customers. Ice Co Storage & Logistics is a natural fit with complementary customers and Savage Haulage offers them a tremendous opportunity for geographic expansion.”
Lucy Folley, who led on the legals as partner at Tees Law, added: “The haulage and storage sector has faced inflationary challenges in the form of rising fuel, energy, and labour costs. Following a slowdown in consolidation during the pandemic, we are now seeing a strong resurgence in interest in mergers and acquisitions as businesses seek to capitalise on strategic opportunities and enlarge their geographical footprints.”
FRP, the business advisory firm, and Hull-headquartered Andrew Jackson Solicitors, acted for The Ice Co Storage and Logistics, with Price Bailey and Tees Law advising Savage.
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