Freight forwarder Langdons, part of STEF Group since 2022, has just announced the acquisition of transport and logistics specialist Long Lane Deliveries, a Scottish family-owned group. This latest acquisition gives STEF a leading position in the European food transport market. Here is an analysis by the experts at AURIS Finance, a consultancy specialising in mergers and acquisitions.
Long Lane Deliveries specialises in the transport of temperature-controlled food products, and operates in Scotland and the UK. The group employs 330 people and has a fleet of 140 vehicles. It has two operating sites in Bellshill (near Glasgow) and Dundee. Since its creation in 2002, Long Lane Deliveries has demonstrated its ability to manage large-scale logistics operations throughout Scotland and the UK.
A pan-European foray
STEF has completed the acquisition of Long Lange Deliveries through its UK subsidiary, Langdons. STEF (Société Française de Transports et Entrepôts Frigorifiques) was established in France in 1920 with the objective of guaranteeing food supplies for the population. The company began to expand in Europe in the 1990s, initially in Belgium, Spain and Portugal, and then in Italy from 2005. In 2018, two Dutch companies joined the group. The carrier expanded across the Channel in 2022 with the acquisition of the British group Langdons, a specialist in temperature-controlled transport. Langdons is a significant player in the British market, handling 2.7 million pallets a year for 2,000 customers.
A pure player in the food transport sector
The acquisition of Long Lane Deliveries represents the final step in the Group’s expansion of its network across the Channel. The newly formed entity will join Langdons’ existing eight sites. STEF Group now has a presence in eight countries and a total of 19,000 employees operating from 250 sites. In 2023, the company’s turnover increased by 6.8% year-on-year, reaching €4.442 billion. This growth is largely driven by the Group’s international activities, which now account for a third of total revenues. By pursuing an ambitious inorganic growth strategy, STEF is aiming to become a pure player in the European food supply chain.
A winning strategy
STEF’s turnover is directly correlated with the level of household consumption. In 2023, the geopolitical context and inflationary pressures had a significant impact on demand. In France, the volumes handled by the fresh and seafood transport business continued to decline in line with the downward trend in food consumption. Furthermore, the Group was adversely affected by the absence of the traditional peak in activity before the end-of-year festivities. Nonetheless, STEF Group succeeded in distinguishing itself by diversifying its markets. In 2023, Portugal made a valuable contribution to the group’s turnover, while Belgium benefited from the recent integration of TransWest, which contributed €12 million to turnover in the first two months following its acquisition.
Our experts at your service
Despite a number of acquisitions, STEF group is facing challenges in the coming months, starting with the greening of its fleet. Against a backdrop of fluctuating markets, major transport groups are seeking new sources of growth. It is possible that well-established family businesses may soon become the focus of attention for these transporters. AURIS Finance’s experts are sector specialists. They provide comprehensive support throughout the buyout and sale process, assisting in identifying targets and structuring financial aspects of deals.
