NEW FREIGHTLINER IN JANUARY SALES COUP
18 Jan 2005
Freightliner’s holding company, Management Consortium Bid (MCB), is selling out. Its 40% staff shareholding in Freightliner is being transferred to its existing City investors, Electra and 3i and a new company created, Freightliner Group Ltd. Already the new company is on target to achieve a turnover of £200m this financial year.
Freightliner recorded an operating profit of £19m in 2004. The financial restructuring package comes as many of the original board members of MCB retire, including Bill Shipley, John Williams and Alan Galley. Finance Director, Douglas Downie, has announced he, too, is stepping down later this year.
Sources at Freightliner say the financial re-structuring initiative will attract more investment and secure Freightliner’s independence in the future. Staff will notice little change.
Eddie Fitzsimons continues as chief executive and Russell Mears is the Group’s new finance director. Peter Maybury remains as managing director Freightliner Intermodal and Adam Cunliffe continues as managing director of Freightliner Heavy Haul.
Over half of Freightliner’s staff own shares in the company; others have traded shares at a profit during the last eight years. Business has boomed at Freightliner since its sale to MCB in 1996. The company has attracted over £300 million of investment, re-equipped with new locos and wagons as well as boosting staff numbers by 40% to cope with increased demand.
MCB submitted a winning bid of £5.4m at competitive auction, purchasing the £22m loss-making subsidiary of RfD. Top board members stand to retire as millionaires whilst staff continue in what has become one of the most stable rail companies to emerge from privatisation. “We remain fiercely independent,” the source said.