Specialist People Services (SPS), the parent company of Driver Hire, has completed a refinancing of its senior and mezzanine facilities with Virgin Money following a competitive process.
The transaction replaces the current facilities with a more competitive financing structure and provides additional financial headroom to support the continued development of the business.
Virgin Money’s support reflects both the strength of the existing relationship and confidence in the quality and prospects of the SPS Group.
Driver Hire was founded in 1983 and is the principal trading business within SPS. The company has built a leading position in logistics recruitment and training through a scalable operating model, strong cash generation and an established presence in both the UK and Australia.
Driver Hire has delivered record revenues across the UK and Australia despite challenging recruitment market conditions, demonstrating the scale, resilience and cash-generative strength of the platform.
SPS also acknowledges the continued support of PGIM, which remains an investor in the business.
The refinancing was led by corporate finance and debt advisory firm Sentio Partners, with legal advice from Squire Patton Boggs (borrower) and Walker Morris (lender), and financial due diligence provided by BDO.
Chris Chidley, CEO, said: “This refinancing marks another important step in the development of SPS and Driver Hire. It gives the group a more competitive financing structure, additional headroom to support growth and represents a significant endorsement of the Driver Hire brand and the quality of the business.”
“It also reflects the broader strength of the group, including the continued success of our Australian operations. That success is built on the strength and commitment of our franchisees, staff and drivers, whose work underpins the performance of the business.”
Steve Roe, Senior Director at Virgin Money said: “We are delighted to continue our support of the SPS Group through this refinancing transaction, which will deliver significant benefits to the group and will provide a strong platform to support future growth. The business continues to go from strength to strength, backed by a strong management team, and we are pleased to support the group in the next stage of its development.”
Andy Miller, partner at Sentio Partners, commented: “This process was about converting the strength of the SPS business into improved financing terms, providing a robust debt funding platform alongside PGIM’s existing investment. As a resilient, cash-generative group delivering record revenues, SPS attracted strong lender interest, with the team at Virgin Money ultimately providing an attractive funding package in an efficient timeframe.”
