jst services Archives - Shard Credit Partners

Shard Credit Partners’ Investee Company JST Completes Transformational Acquisition

Posted on 9th January 20259th January 2025 by abigailscott

On 24^th December, 2024, JST Ports & Logistics Holdings Ltd (“JST”) completed the acquisition of the rail-handling and logistics company, RFS Works Ltd (“RFS”), for an enterprise value of £18.3 million from Aggregate Industries UK Ltd and GRS Roadstone Group Ltd.

RFS, headquartered in Harlow, Essex, is a leading provider of integrated services for bulk material handling, logistics, earthworks and heavy mobile equipment solutions, primarily focused on the rail transportation sector.

JST, based in Ayr, Scotland and operating throughout the UK, is an independent port handling specialist in the bulks and general cargo sectors, utilising its specialised fleet of mobile cranes and materials handling equipment.

The combination of the RFS and JST businesses will create the leading, independent, UK ports and rail logistics specialist with circa 200 employees, a materials handing fleet comprising more than 100 large machines, and combined annual revenues approaching £40 million.

This landmark transaction marks the second strategic add-on acquisition since the primary MBI of JST by Richard Jennings, backed by Shard Credit Partners Ltd, in December 2020. In 2024, JST was awarded a King’s Award for Enterprise, for Innovation.

Both RFS and JST have histories dating back over 30-years and have developed unique and industry-leading positions in their respective sectors during this time. Whilst RFS has historically focused on the bulk aggregates and construction materials sectors, JST serves a diverse base of customers handling a wide range of commodities including aggregates, timber, steel, agri-bulks, general bulks, recycling and alternative fuels. The newly merged company will have the capability to offer uniquely integrated ports and rail materials handling, transportation and logistics services across the UK and Ireland. Aggregate Industries and GRS will continue to work closely with RFS going forward.

Richard Jennings, CEO of JST said, “The acquisition and merger of JST with RFS is a deal that has been a long time in the making. The strategic fit and opportunity to drive real synergies on multiple fronts represents an exciting opportunity to enhance the overall service offering to all our customers and drive operating efficiencies. We have been working closely with the senior leadership team at RFS and look forward to strengthening ties and building a market-leading business together in the coming months”.

Alastair Brown, Founder and CEO of Shard Credit Partners Ltd commented, “we are delighted to have been able to support Richard and his team in delivering this transformative acquisition and look forward to assisting in the integration of RFS with JST to drive significant value creation for our fund investors”.

JST is majority-owned by alternative investment fund manager Shard Credit Partners Ltd, through its UK SME direct lending strategy and current CEO, Richard Jennings, both having invested through an MBI in December 2020.

JST was advised on the acquisition by Newcastle-based RG Corporate Finance, with a team led by partner Carl Swansbury, supported by CF director Alex Simpson and CF manager Sam Shield. JST received legal advice from Gateley, led by banking and finance partner Andrew Madden with Rebecca Mills and M&A advisory partner Oliver Harker supported by George de Stacpoole. Gateley also produced the legal due diligence report. Hickman Shearer undertook technical due diligence. Financial and tax due diligence was undertaken by Azets. AIUK and GRS Roadstone received legal advice from Addleshaw Goddard. Working capital and asset-based financing was arranged by Specialist Asset Finance Ltd via Cynergy Business Finance Ltd, who were advised by Shoosmiths, led by Natalie Barnes.

About Shard Credit Partners:

Shard Credit Partners is an alternative investment fund adviser focused on high cash yielding private credit strategies in the UK lower mid-market. Current assets under management is circa £200 million. Its funds seek to generate superior risk-adjusted returns from conservatively structured senior secured credit investments with meaningful equity upside. Fund strategies include corporate direct lending, technology venture financing and international trade finance.

Shard Credit Partners successfully completed eleven primary investments and around thirty bolt-on acquisitions from its debut direct lending fund Shard Credit Partners Fund I, which held a first close in October 2017 at £90.2 million. Shard Credit Partners plans to hold a first close on its second vintage UK lower mid-market direct lending fund with a target of £250 million during Q4 2025.

Shard Credit Partners invests in small to medium sized businesses with strong management teams, supporting them by providing transformative growth capital and event driven financing in support of innovation, growth and expansion. The Fund invests in businesses across all sectors and throughout the UK. The firm has a strong ESG focus; in particular, it is a strong supporter of female entrepreneurs and firms with meaningful female leadership, ownership and senior management.

Shard Credit Partners Ltd is an Appointed Representative of Shard Capital AIFM LLP, authorised and regulated by the FCA (FRN 615463).

Contact details:

Shard Credit Partners

Investor relations: IR@shardcreditpartners.com

Business: info@shardcreditpartners.com

Website: www.shardcreditpartners.com

JST Services (Scotland) Ltd completes acquisition of pier and haulage division of TSL Contractors Limited, Isle of Mull, West Coast of Scotland.

Posted on 27th February 202427th February 2024 by abigailscott

Roundwood timber being loaded onto a cargo ship at Fishnish Pier, Isle of Mull.

Shard Credit Partners’ investee company JST Services (Scotland) Ltd (“JST”) has acquired the pier and haulage division of TSL Contractors Limited (“TSL”), located on the Isle of Mull off the West Coast of Scotland. This strategic acquisition extends JST’s operations in the Scottish timber transportation and logistics industry. Approximately 50,000 tonnes of roundwood logs are loaded onto cargo ships at Fishnish pier each year, to be transported across the open sea to processing centres on the UK mainland.

JST is a unique provider of mobile port logistics and materials handling and transportation services at ports around the UK and Ireland. From its base in Ayrshire, South West Scotland, JST operates a fleet of mobile cranes, timber haulage vehicles, timber handling vehicles, and mobile port handling equipment. Much of its equipment has been developed specially with its clients and equipment manufacturers to undertake complex materials handling tasks, creating a unique IP and patent base.

TSL has operated Fishnish pier on an exclusive basis on the Isle of Mull since its construction in 2014 on behalf of the Scottish Forestry Commission (Forest and Land Scotland) which manages 470,000 hectares of Scotland’s forests and woodlands. TSL’s fleet of HGV’s haul around 50,000 tonnes of timber per year from the surrounding Mull forests to the pier, where it is loaded directly onto cargo ships for transport to timber processing facilities. This operation provides valuable economic activity in a sparsely populated area of the country, in addition to providing an essential service in the maintenance of the ecological supply-chain of the island.

The Fishnish pier activities on Mull are viewed as being particularly attractive to JST, not only from an economic perspective, but also from a strategic perspective. The integration of the Fishnish pier operation into the wider JST Floating Piers division strengthens its network and offering to customer engaged in sustaining the Scottish commercial forestry industry.

Richard Jennings, managing director of JST said:

“This strategic bolt on acquisition to JST’s Floating Piers division in Scotland will enable us to further expand our offering to key customers, especially the Scottish Forestry Commission”.

Alastair Brown, CEO of Shard Credit Partners, comments:

“this acquisition is strongly accretive and will help to accelerate JST’s expansion in the Highlands and Islands, complimenting recent strong organic growth achieved throughout the UK and Ireland since our investment in the business three years ago”.

Legal advice to JST was provided by Gateley Legal, led by Oliver Harker. Financial DD was provided by Azets, led by Graham Cunning and Joseph Sheridan.

Shard Credit Partners’ strategy is to become a leading provider of capital to entrepreneur and management-owned high growth businesses and private equity-owned companies focused on achieving transformational growth and expansion in the UK regions. During the past five years, Shard Credit Partners has invested more than £150.0 million in supporting regional Management Buy-Out transactions throughout the UK regions and M&A buy-and-build acquisition strategies, as well as growth capital expenditure financing.

Continue reading “JST Services (Scotland) Ltd completes acquisition of pier and haulage division of TSL Contractors Limited, Isle of Mull, West Coast of Scotland.” →

Alastair Brown interviews Richard Jennings, Managing Director of JST Services (Scotland) Ltd

Posted on 29th September 2021 by shardadmin

In December 2020, Shard Credit Partners announced it had provided acquisition financing of £12.0 million in support of a management buy-in (“MBI”) acquisition of JST Services, led by new MD and port sector veteran, Richard Jennings.

Fast forward to September 2021 and Shard Credit Partners’ CEO, Alastair Brown, catches up with Richard Jennings, Managing Director at JST Services (Scotland) Ltd.

Below, Alastair interviews Richard on how JST Services (Scotland) Ltd has been operating since the acquisition, what achievements have been made, as well as what the future outlook looks like.

Shard Credit Partners completes its first buy-out investment in Scotland.

Posted on 8th December 202020th December 2021 by shardadmin

Shard Credit Partners announces its first investment in Scotland with signing and completion of a £12.0 million senior secured unitranche financing in support of a MBI acquisition of market-leading port handling and logistics company JST Services (Scotland) Ltd (“JST Services” or the “Company”) which completed on 6^th December 2020.

Shard Credit Partners has provided acquisition financing of £12.0 million in support of a management buy-in (“MBI”) acquisition of JST Services, led by new CEO and port sector veteran Richard Jennings and Independent Port Capital Management Ltd (“IPC”), a Jersey-based port sector investor. The MBI team in conjunction with Shard Credit Partners will undertake a buy-and-build acquisition strategy in the UK port logistics sector with JST Services at its core.

JST Services was formed in 1993 by John Scott and is the market-leader in providing flexible port-handling services throughout the UK and Ireland via its modern fleet of specialist mobile cranes, floating piers, road haulage vehicles, and maritime shipping services. JST Services is headquartered in Ayr in South West Scotland. Under John Scott’s ownership, JST Services has demonstrated an impressive track record of bringing design innovation and bespoke engineering solutions to the dry bulk and break-bulk cargo and materials handling sectors over several decades since inception. The Company benefits from having a unique portfolio of patents and designs for its extensive range of specialist materials handling equipment, which is actively deployed on a daily basis throughout many of the UK’s ports.

The investment by Shard Credit Partners will enable JST Services to expand its core offering by providing funding for a series of bolt-on acquisitions, as the business provides a platform for consolidation in the UK’s highly fragmented port services industry.

Richard Jennings, the new CEO of JST Services said: “John Scott and the JST Services team have built a well-respected and highly successful business, which provides a solid platform for further strategic growth. With the support of Shard Credit Partners, we are keen to scale the company by expanding our presence in the port services sector organically and through targeted M&A activity to enable more consolidation across the industry, offering greater confidence and continuity to our customers.”

Alastair Brown, CEO of Shard Credit Partners, commented: “This is an excellent opportunity for us to work closely with a dynamic new management team who can build on the substantial achievements of this innovative business. We are confident that JST Services will be successful in overcoming the fragmentation of the UK port services sector through an M&A strategy that will lead to the creation of a network of operations that will give its customers a consistent and reliable single-source service across the UK and in time, further afield.”

Providing corporate finance advice to Shard Credit Partners and the MBI team was Newcastle-based corporate finance boutique RG Corporate Finance (“RGCF”), led by Partner and Head of Corporate Finance, Carl Swansbury, supported by Corporate Finance Senior Manager, Rhiannon Nightingale. Business and transactional tax advice was provided by RG’s Business Tax Partner Simon Whiteside and Director, Simon Hopwood. Financial and tax due diligence was conducted by RG’s Grahame Maughan, Andrew Cameron and Jon Routledge.

Legal advice to Shard Credit Partners was provided by Gateley Legal, led by Partners Andrew Madden and Andrew Cowan.

Rhiannon Nightingale, Corporate Finance Senior Manager at RGCF said: “This is a significant and technical transaction, bringing together a new management team and an experienced third-party funding provider that will ensure that JST Services has the resources and expertise required to embark upon the next stage of its scale-up journey. As the business identifies potential acquisition targets and continues with its ongoing organic growth, it has the potential to significantly grow its market share.”

JST Services was supported legally by John Fulton and Andrew Fleetwood, Partners at Gilson Gray LLP, with financial and tax advice from William Duncan & Co, led by Managing Partner Robert Fergusson.

This transaction represents the first buy-out of a Scottish business financed by Shard Credit Partners. It is also the sixth consecutive buy-out transaction financed by Shard Credit Partners in the North of England and Scotland in the past two years, making Shard Credit Partners one of the most active investors in the Northern English regions and Scotland currently. It is currently working on further mandates in the North of England which it expects to complete by year end.

Shard Credit Partners’ strategy is to become a leading provider of capital to entrepreneur and management-owned companies focused on achieving transformational growth and expansion in the UK regions. In the past two years, Shard Credit Partners has invested more than £80 million in supporting regional Management Buy-Out transactions and M&A buy-and-build acquisition strategies, as well as growth capital expenditure financing.

About Shard Credit Partners:

Shard Credit Partners is an alternative investment fund manager focused on private credit strategies in the UK lower mid-market. Its funds seek to generate superior risk-adjusted returns from conservatively structured senior secured credit investments at low leverage, benefiting from robust documentation and a full suite of financial and non-financial covenants. Shard Credit Partners is currently investing from its debut direct lending fund Shard Credit Partners Fund I, which held a first close in October 2017 at £90 million. Shard Credit Partners plans to hold a first close on its second UK lower mid-market direct lending fund during the first half of 2021.

Shard Credit Partners invests in solid small to medium sized businesses with strong management teams, supporting them by providing transformative growth capital and event driven financing in support of innovation, growth and expansion. The fund invests in businesses across all sectors and throughout the UK. The firm has a strong ESG focus; in particular, it is a strong supporter of female entrepreneurs and firms with meaningful female leadership and senior management.

Recent investments include the innovative double MBO of BW Legal and PRAC Financial in Leeds, which was named by Insider Media as their Deal of the Month for February 2019. In the same month the fund also backed the primary MBO of GadCap Technical Solutions Ltd in Newcastle. In September 2019, Shard Credit Partners completed the MBO of Alexander Technologies Europe Limited in Peterlee, County Durham named by Insider Media to the short list for North East Private Equity/Venture Capital Deal of the Year 2020. In March 2020, Shard Credit Partners backed the MBO of Jackson Lees Group in Merseyside by its senior management team.

Contact details:

Newgate Communications

Tel: Elisabeth Cowell / Robin Tozer / Isabelle Smurfit

Email: shardcapital@newgatecomms.com

Shard Credit Partners

Investor relations: IR@shardcreditpartners.com

Business: info@shardcreditpartners.com

Website: www.shardcreditpartners.com