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Lep staff share in buy-out deal

8th February 1996
Page 13
Page 13, 8th February 1996 — Lep staff share in buy-out deal
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Which of the following most accurately describes the problem?

• Staff at Lep International are to be offered shares in the company, following a management buy-out. More than than 6,000 workers in 31 countries are set to benefit.

Management bought the freight forwarder for a 11 down-payment and immediately assured haulage sub-contractors that their work is safe.

The buy-out from the Lep Group which has gone into receivership owing bankers £138m leaves the 11.2bnturnover Lep International set to continue as the world's sixth largest freight forwarder.

The L4.5m profit-making organisation was bought by management after a bid from NFC fell through before Christmas.

Over the next five years Lep International will pay £5m towards the group's debts and will also give the banks 33% of its shareholding. The banks are hoping that the company's value will soar, following in the footsteps of Lep's Swift Transport, which management bought for £20m and sold 18 months later for L80m to Christian Salvesen.