UK bulk mail sorting specialist Secured Mail has received “significant” new funding from one of its existing private equity backers.
The Warrington-based company, which recently announced a partnership with parcel carrier City Link to help it expand further into mail collection, said the fresh investment from Next Wave Partners will support its expansion plans.
In particular, Secured Mail said the funding will help drive its packet sorting services, designed particularly for e-commerce demand.
New machinery and new jobs are on the way for the company’s sorting hub in Crick, Northamptonshire, which it acquired from DHL Global Mail last year.
Secured Mail and Next Wave Partners did not disclose the amount invested, but the London-based private equity firm usually looks to make investments of between £2m and £10m in small and mid-sized businesses.
Next Wave has invest in Secured Mail since 2011, when the mail company’s annual revenue was £48m. Expectations are for revenue to reach £80m in 2013.
Secured Mail CEO Mark Bigley is looking to the next phase of his company’s development
Mark Bigley, the chief executive who founded Secured Mail in 2004, said his company had been investing in “people, technology and infrastructure” since Next Wave had come on board.
“This new backing puts us in the perfect position for our next phase of development,” he said. “We are committed to continued investment in the business to support our customers and provide the most reliable postal service in the UK.”
Secured Mail achieved a 42% growth in its £68m annual sales in 2012 compared to the year before. The company provides sorting services for mail to be entered into the Royal Mail last mile network, under the UK’s Downstream Access system.
Secured Mail has a site in Dartford, Kent, as well as in Warrington and Crick. Clients include Amazon, Domino’s Pizza and British Gas parent Centrica.
The tie-up with City Link is expected to initially involve processing for around 50m to 100m items of mail a year.
Stephen Walls, a partner at Next Wave, said his company’s latest investment would help drive “market-leading” growth at Secured Mail.
“The company is well-positioned to capitalise on opportunities in the growing UK e-commerce postal market and support UK businesses who require a trusted operator with a reliable network to deliver their mail,” he said.
Source: Post&Parcel/Secured Mail
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