Insight

Franchise Services M&A Spotlight: InXpress Holdings

KPMG Coporate Finance acted as financial advisor to InXpress Holdings LTD

Stephen Guy

Stephen Guy

Managing Director, KPMG Corporate Finance LLC

+1 410-949-8909

KPMG Corporate Finance1 acted as exclusive financial advisor to InXpress

Transaction Overview

  • Headquartered in Manchester, U.K. InXpress operates as an international franchisor of parcel, freight and delivery logistics services with a focus on serving small and medium sized businesses (“SMEs”)
  • In partnership with select members of the existing management team, InXpress was acquired (majority sale) in November, 2020 by Hudson Hill Capital, a U.S. based private investment firm
  • The company serves ~30,000 SME customers through a global network of almost 400 franchisees across 14 countries
    • InXpress maintains multiple relationships with tier-one parcel, air and freight carriers around the world, offering discounted rates to its franchisees and SME customers
    • Its proprietary software platform enables franchisees and SME customers to centrally manage all of their transportation and logistics requirements

Impact / Expected Outcomes

  • The transaction reinforces InXpress’ commitment to drive growth through a combination of geographic expansion, enhanced capabilities and an aggressive and highly strategic acquisition strategy

KPMG Corporate Finance

  • This transaction underscores KPMG Corporate Finance's long track record and commitment to advising leading franchisors and investors
  • Staffed with a fully integrated, cross-boarder team of M&A advisors (U.S. and U.K.), KPMG Corporate Finance leveraged its deep industry expertise and strong buyer relationships to architect a highly competitive process which fully maximized shareholder value

InXpress and sponsor thoughts and feedback on the process

The M&A Sale Process
"…InXpress is an incredible business which is poised for explosive growth. The team at KPMG understood this and knew exactly how to balance our need to find  a supportive, flexible partner through our evolution with the shareholders strong desire to maximize value – and we could not be more pleased with the result…"
-Mark Taylor
Global CEO at InXpress, United Kingdom
inexpress-holdings
92%

KPMG Corporate Finance surveyed over 50 parties having participated in the InXpress sale process

92% of survey respondents believe KPMG Corporate Finance effectively communicated the full value proposition of InXpress

100% of survey respondents communicated they would be open to or highly supportive of KPMG Corporate Finance as their exclusive sell-side advisor…


Outstanding Result in a Challenging COVID Environment

"… As the CEO of InXpress Americas and having been accused of being a thought leader in the industry, I am all too familiar with the economic headwinds COVID can create for a rapidly growing franchise model… I found it remarkably impressive how KPMG was able to manage our process through a challenging financing environment to drive a premium result for a premium business with a fantastic partner in Hudson Hill…
Dustin Hansen
CEO InXpress Americas,
Author and Board of Directors, International Franchise Association

Management on KPMG Corporate Finance…

…KPMG was incredible and very knowledgeable.  I can’t say enough good things about them.  We interviewed just about every other advisor group that has worked with franchisors, and these guys were by far the best folks; and they proved it time and again..
Dustin Hansen
CEO InXpress Americas,
Author and Board of Directors, International Franchise Association

Note: (1)Represents the global Corporate Finance practices of KPMG International’s network of independent member firms

InXpress case study
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KPMG Corporate Finance LLC’s Business Services team provides investment banking and financial advisory services to a broad range of outsourcing service providers.