Aberdeenshire-headquartered haulage firm Caledonian Logistics has been taken over by English company Drac Logistics.
Owner Derek Mitchell confirmed he had sold the business for an undisclosed sum.
Mr Mitchell, who started up Caledonian Logistics in February 1999, said he had made the decision as he wanted to retire.
The business currently has 145 employees and a fleet of 90 trucks, with depots at its headquarters in Kintore, as well as Oldmeldrum, Inverness and Cumbernauld. It also owns a parking yard in Lockerbie.
Business as usual
All members of staff will be retained, with Mr Mitchell keen to stress it’s “business as usual”.
He said: “It’s been part of my life for 24 years, but I’ve sold my shareholding and I’m retiring.
“I’m 68 in December and it’s time to move on.
“The message is it’s business as usual. It’s only a ownership change.”
Drac Logistics, trading under the Drac Global banner, specialises in imports and exports.
It is headquartered in Stone, Staffordshire, but also has an office in Falkirk.
The group currently has 45 employees and four based in Falkirk who will transfer to the Caledonian Logistics site in Cumbernauld.
Investment to strengthen fleet
Drac owner and chief executive Alex Hayes said the acquisition allowed his company to set up a Caledonian Logistics container haulage division, based in Grangemouth and Aberdeen.
This will see a £600,000 investment for an additional fleet of 10 vehicles and 14 skeletal trailers.
Mr Hayes said: “Caledonian Logistics has a fantastic name for service and that attracted us in the first place.
“Secondly, we have a strong Scottish customer base and do a lot of food products out of Scotland for European and overseas markets.
“There’s a shortage of container transport within Scotland, like there is all over the UK and Europe.
“We’ve put in £600,000 investment as well as other cash to grow the business.”
Andrew Stokes, who spent 21 years as head of international sales overseeing international logistics for Walker’s Shortbread, has been named managing director at Drac’s new acquisition.
Expand the business
Mr Mitchell said: “Drac are currently involved in import and export and will expand the business into these fields.
“Alex and myself had been chatting for the best part of a year and a quarter, and it obviously grew arms and legs from February onwards.”
Caledonian Logistics posted pre loss tax losses of £872,108 on turnover of £15.17 million for the year to April 30 2022.
This was compared with profits of £134,470 on turnover of £13.95m in the previous 12 months.
Reassurance for staff
When asked how staff had reacted to news of the sale, Mr Mitchell said: “It’s always a case of trying to calm them down in as much as it’s continued employment, with no change to their terms – just a change of ownership.
“The company name has to be retained, the company colours have to be maintained and, obviously, the staff have got to be in continuous employment. Nothing changes.”
Mr Mitchell will continue in his director role until his retirement in December.
Caledonian brand attracted new owner
Mr Stokes said: “I’m excited about coming on board with Caledonian.
“The brand name is very important to us.
“What Drac are able to do is bring a lot more critical mass to the company to make it more viable.
“It’s a great fit and our aim is to build the operation based in Kintore and expand it.
“It’s a win-win for everyone involved.”
Conversation