Lloyds Development Capital (LDC) has bought a stake in same day distribution company CitySprint in a deal which values the business at £175 million.
It joins existing shareholder Dunedin, which has retained an equity stake in the business.The CitySprint management team remain the major shareholder.
The transaction provides significant new capital and will accelerate the next stage of its growth, CitySprint said.
The company has also created a new division, LastMileLink Technologies, to develop new products and improve the delivery platform infrastructure. It will benefit from the continuing programme of investment planned for the business.
Patrick Gallagher, CEO of CitySprint, said: “We have a really strong partnership with Dunedin and LDC is joining us, as a key strategic investor, at a very exciting time in our business as we capitalise on our first mover advantage in the same day market.
“We are perfectly placed to take advantage of the increasing demand for same day and specified hour fulfilment. This is being driven by consumers seeking confidence and convenience and from a growing number of retailers looking to out manoeuvre their competitors."