TDG Limited
“We are pleased about this new business relationship with W. P. Carey. The transaction is another key milestone in our property and business strategy to further strengthen our balance sheet in order to reinvest and accelerate the development of TDG. Over the past year TDG has substantially changed its business profile and is now best placed to capitalise on a more benign economic environment. We are delighted to work with long term partners such as W. P. Carey, who understands the sector and TDG's long term objectives.”
- Mike Brannigan, CEO, TDG
Sale-leaseback Financing
Transportation-Cargo
May 2010
TDG Limited operates throughout Europe, including the UK, Ireland, France, Spain, Germany, Poland and Hungary. The Company provides logistics and supply chain management services. TDG also offers warehouse, transport and freight forward services and operates a network of cold storage facilities. Some of its many customers include, Kimberly-Clark, Heinz, Georgia-Pacific, Coca-Cola, Tesco and SC Johnson. It is wholly owned by the private equity investment firm, Douglas Bay Capital PLC.
Situation: TDG was looking to strengthen its balance sheet, support additional investment in its core business and position itself for future growth with a sustainable capital structure.
Financing: The W. P. Carey Group provided $34 million in sale-leaseback financing for TDG Limited UK. TDG’s subsidiary, TDG Property Holdings Limited entered into a lease agreement for nine cold storage warehousing space throughout the UK.
Outcome: The capital generated by this transaction enabled TDG to pay down third party debt and deleverage its balance sheet.
