Hong Kong's EmergeVest makes UK logistics acquisition

Part of the investment thesis is extending the company’s services into Asia. Downton works with the likes of Dyson, a consumer appliances company that generates more than half of its profits in the region – notably from Japan and China – and has manufacturing bases in Southeast Asia. EmergeVest will leverage its Asian portfolio companies and network to help Downton offer Dyson and other clients international supply chain services.

Established in 1955, the previously family-owned company operates a nationwide fleet of 600 tractor units and 1,800 trailers, generating annual revenue of approximately GBP120 million. In addition to Dyson, its clients include AB InBev, Whirlpool, and Marketforce. EmergeVest is providing capital to support growth as well as taking out the entire position held by members of the Downton family.

EmergeVest has more than $450 million in committed capital, with Asian family offices prominent in its LP base. It is currently investing the EmergeVest Logistics Fund. The other UK-based companies in the portfolio are software provider Adjuno, Allport Cargo Services, NFT Distribution, NR Evans, Jigsaw, and Palletforce. The private equity firm also owns Hong Kong-based Cargo Services Group.

Following the spin-out from HSBC in 2013, EmergeVest raised capital for a specific set of deals it wanted to complete across two themes: Asia special situations and UK control deals. The former category included Taiwan-based denim and garment maker JD United Manufacturer, which EmergeVest backed in 2014, taking out a position held by HSBC. An exit came last year with a more than 2x return.

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• Topics
• Greater China
• Europe
• Buyouts
• Industrials
• Hong Kong (China)
• Logistics
• EmergeVest