TPA Capital-backed northstarr Group acquired United Pallet Network and secured related financing

Transaction

Buy-side and Acquisition Finance

Undisclosed

Role

Adviser to TPA Capital-backed northstarr Group on the acquisition of United Pallet Network and related financing

Sector

Business Services

Region

United Kingdom

We have advised TPA Capital-backed northstarr Group (northstarr), a provider of interconnected solutions across transport, storage and asset optimisation, on its acquisition of United Pallet Network (UPN), one of the UK’s leading palletised freight member networks. Our Debt Advisory team supported northstarr in securing the finance package to support this acquisition.

northstarr was established with the purpose of identifying, acquiring and developing businesses with the infrastructure, technology and expertise to revolutionise supply chains.

Founded in 2001, UPN connects over 100 independent regional haulier members through its central hub at Fradley, Staffordshire, facilitating collaboration for the delivery of palletised freight nationwide. UPN’s proven track record of service excellence has been underpinned by a strong, proprietary technology platform.

The acquisition is northstarr’s fourth, and largest, since TPA’s investment, and brings together two of the UK’s pallet networks under one group. UPN will continue to operate as its own brand alongside Pallet-Track, giving members and customers breadth of choice, with the combined networks spanning c.200 member hauliers and c.6.3m pallets a year.

This marks a significant milestone on the northstarr journey to becoming one of the leading tech-enabled collaboration platforms for the logistics industry. UPN also joins X2, offering full-load capacity on a 4PL basis, TruckCom’s multi-modal transport management software and Sqrrl’s flexible warehousing marketplace under the northstarr umbrella. The combination of proprietary software and adjacent service lines creates further opportunities for transport operators to acquire new customers, improve customer retention and grow wallet share. Supported by shared data, intelligence and best-in-class technology, the acquisition strengthens northstarr’s position as a market-leading, asset-light, tech-enabled logistics collaboration platform. northstarr intends to continue exploiting inorganic and organic growth opportunities underpinned by technology and data.

More about the process

Working closely with both the northstarr management team and TPA Capital, our Debt Advisory team presented lenders with an attractive credit opportunity. Appetite to fund the transaction was high, allowing for us to negotiate competitive terms whilst also providing the Group the flexibility to run the business and achieve its growth ambitions. The transaction was ultimately financed by Macquarie Capital's Private Credit team, who provided a substantial day-one debt package.

Our M&A team assisted northstarr in the identification of UPN as a highly strategic target and supported the team on deal strategy and execution.

Clearwater played an important role in delivering this transaction, supporting us across both the M&A process and the acquisition financing. Their understanding of northstarr and our wider strategy, combined with strong execution across both teams, helped us navigate the transaction effectively and put the right funding structure in place to support the Group’s continued growth. We really valued their advice and partnership throughout.
Jak Wright, Investment Manager, TPA Capital

UPN is a high-quality network with a loyal membership, strong service levels and excellent technology, and Dave and his team have built something special. Bringing UPN into northstarr is a major step forward in our strategy. By collaborating across the Group – two strong network brands working alongside X2, TruckCom and Sqrrl – we can better serve our customers and give our members more volume and more services to sell, as we build a market-leading, asset-light, tech-enabled logistics platform. I’d like to welcome everyone at UPN and its members to the Group.
Stuart Godman, Group CEO, northstarr

UPN has been built on the strength of our members and the service they deliver every night. Joining northstarr gives us the backing and the broader set of services to help our members grow their own businesses, while keeping the UPN brand, culture and service our members and customers value. We’re excited to be working with Stuart, the northstarr team and TPA on the next chapter for UPN.
Dave Brown, Managing Director, UPN

This financing provides a strong platform to support the next stage of the Group’s growth. The acquisition significantly increases its scale and strengthens its position across the UK logistics market. Putting the right funding structure in place was key to delivering the transaction while providing the flexibility to support the Group’s wider ambitions.
Chris Smith, Managing Director, Clearwater

northstarr’s combination of scale, technology and value-added services is genuinely differentiated within the pallet network market. This acquisition further strengthens that proposition and creates an exciting platform for the next phase of the Group’s growth.
Andy Battersby, Director, Clearwater