Sale-based warehouse and logistics equipment supplier Palletower has acquired racking and shelving specialist West Pennine Storage.
Palletower’s Matthew Palmer said: “Acquiring West Pennine enabled us to purchase an established and well-respected business within the racking and shelving industry.
“The companies’ product ranges complement each other perfectly as both sets of customers require one another’s products.”
Founded in 1988 and based in Haslingden, Lancashire, West Pennine is also a warehouse equipment distributor which designs and supplies racking and shelving systems.
The business also specialises in mezzanine floor installations and following the acquisition will trade under the Palletower group name.
Palletower, based in Sale, Greater Manchester, describes itself as a “world leader” in producing and supplying storage and logistics equipment and exports to over 35 countries globally and has depots in the Czech Republic and Finland.
Majority owned by managing director Matthew Palmer, Palletower made pre-tax profits of £5.91m on top line revenues of £33m in the financial year to December 2022, the last for which accounts are available.
Colin Evans, who sold West Pennine, and will exit the business, said: “We collectively decided the business would benefit from new owners (potentially as part of a larger organisation) to help it grow and be successful in the future, whilst at the same time we wanted to retire, so a commercial sale made great sense.”
Evans, who is exiting West Pennine along with fellow directors Steve and Julie Mercer, was advised by KBS Corporate and the deal was led by Zaahid Akhtar. The price paid hasn’t been disclosed.
He added: “We think it’s an excellent fit with the new owners. It’s a complementary business to the buyer’s existing business, which is growing and ambitious, and therefore we think it’s an ideal combination for future growth and success.
“Our transaction demonstrated that even a privately owned micro-business can have commercial value in the eyes of potential buyers, and anyone thinking of exiting shouldn’t just shut up shop but should explore the opportunities to sell it and realise some financial benefits,” he said.
“We were very apprehensive that a small business like ours would attract potential buyers.”
