Information on the Target

Ontime, established in 1991, is a leading logistics company in Spain that specializes in providing a comprehensive range of services tailored to both large corporations and SMEs. Its offerings include integral logistics solutions, courier services, palletized transportation, and digital documentation services. The company boasts a workforce of over 550 employees and generates annual revenues exceeding €60 million.

Having recently embarked on an international expansion plan, Ontime has opened two logistics centers in Portugal and aims to continue growing through targeted acquisitions, planning to secure three companies in the near future. To fund this growth, Alantra Private Debt has committed approximately €20 million through a seven-year bullet loan.

Industry Overview in Spain

The logistics industry in Spain is a pivotal sector contributing significantly to the country’s overall economy. With its strategic geographical location, Spain serves as a critical logistics hub within Europe, facilitating efficient distribution and transportation services. The demand for logistics solutions has surged due to increased online shopping and e-commerce, driving the need for advanced logistics support for both B2B and B2C segments.

Spain's logistics market is characterized by a diverse mix of players, from large multinationals to smaller specialized providers. Key factors such as technology integration, supply chain optimization, and sustainability are shaping the competitive landscape. The Spanish government is also investing in infrastructure development, enhancing road, rail, and port services, all leading to an increasingly robust logistics environment.

In recent years, the sector has witnessed substantial growth fueled by the rise in consumer demand for rapid delivery services. Companies are leveraging technology to streamline operations, enhance customer experience, and optimize logistics processes. This presents immense opportunities for sector players willing to innovate and expand their service offerings.

Furthermore, the ongoing globalization of trade presents Spanish logistics companies with the chance to broaden their market reach, making international expansion an attractive growth strategy. Ontime’s recent international ventures signify this trend within the industry.

The Rationale Behind the Deal

The investment by Alantra Private Debt in Ontime reflects a strategic move to support the company's growth ambitions in the logistics sector. By providing vital funding, Alantra enables Ontime to enhance its market position through acquisitions that will diversify its service portfolio and expand its operational reach.

This alignment between Alantra’s investment strategy and Ontime’s growth objectives ensures that the funding will be utilized efficiently for both organic growth and strategic acquisitions, thus reinforcing Ontime’s competitive advantage in a rapidly evolving industry.

Information about the Investor

Alantra is an independent global investment banking and asset management firm that specializes in the mid-market segment. Its Private Debt team has recently completed its second deal from its second fund, which has raised approximately €170 million with a goal of reaching €200 million. The firm focuses on providing flexible financing solutions to growing mid-sized companies primarily in Spain and Southern Europe.

Alantra’s Debt Fund II utilizes a well-defined investment strategy that targets companies with revenues ranging from €25 million to €200 million and an EBITDA of at least €3 million. The fund aims to generate attractive returns by investing primarily in senior debt, with individual investments between €5 million and €35 million aimed at funding various corporate needs including capital expenditures and acquisitions.

View of Dealert

The investment in Ontime by Alantra is viewed positively, given the company's robust growth prospects within the logistics sector in Spain. With the ongoing demand for efficient logistics solutions driven by increasing consumer expectations and e-commerce growth, Ontime stands positioned to capitalize on these market dynamics.

Furthermore, the strategic focus on acquisitions is a prudent approach that can enable Ontime to enhance its service offerings and operational efficiencies, thus providing a more compelling value proposition to its clients. As markets continue to stabilize and evolve post-pandemic, logistics companies with a clear growth strategy are likely to thrive.

The flexible capital provided by Alantra will allow Ontime to implement its growth plans effectively. The emphasis on senior debt investment ensures that Alantra retains priority in repayment, mitigating risk, and bolstering the financial health of Ontime as it seeks to expand.

Overall, this deal appears to be a strategic investment aligned with market needs that not only supports Ontime’s growth but also positions Alantra’s Debt Fund II for potential success in the vibrant logistics landscape of Spain.

View Original Article