NOTTINGHAMSHIRE: Van Elle Holdings plc, the United Kingdom’s largest ground engineering contractor, has entered a five-year partnership with WS Specialist Logistics Limited to consolidate its heavy haulage operations.
As part of the agreement, WS Specialist Logistics will take over the management and operation of Van Elle’s heavy goods vehicle fleet, incorporating the company’s transport management team and directly employed drivers into a new division dedicated to heavy plant haulage. The move includes the disposal of Van Elle’s in-house HGV fleet.
Company officials said the partnership allows Van Elle to reallocate capital toward growth initiatives aimed at increasing shareholder returns while optimizing transport operations and cutting corporate administrative costs. WS Specialist Logistics’ capacity and proximity to Van Elle’s Nottinghamshire headquarters were cited as key factors in the decision.
WS Specialist Logistics paid Van Elle £2.9 million in cash for the assets being transferred and assumed operational control on May 1. The proceeds enabled Van Elle to reduce its funding facility with ABN AMRO from £11 million to £8 million, with approximately £6.5 million remaining undrawn after completion.
“This new partnership with WS Specialist Logistics is a logical initiative for the Group, releasing capital to invest in areas of greater return as we enter a long-awaited period of anticipated growth in our core markets,” Van Elle Chief Executive Mark Cutler said in a statement.
“WS Specialist Logistics have been an excellent partner to the business for several years, and we look forward to drawing on their expertise to further improve our transport operations.”
Van Elle, headquartered in Nottinghamshire, specializes in ground engineering solutions across the United Kingdom.