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

27 February 2024

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.

 

About Shard Credit Partners:

Shard Credit Partners is an alternative investment fund manager focused on high cash yielding private credit strategies in the UK lower mid-market.  Current assets under management stands at circa £200 million.  Its funds seek to generate superior risk-adjusted returns from conservatively structured senior secured credit investments with 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 £100 million during Q3 2024.

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:	Investor relations:   IR@shardcreditpartners.com Business:    info@shardcreditpartners.com Website:    www.shardcreditpartners.com