100% equity in Red Funnel sells to UK and Canadian pension schemes

The infrastructure equity investment arm of M&G Investments has announced it’s agreed to sell its 100% equity stake in Red Funnel.

Red Osprey - Red Funnel

Amy shares this latest new on behalf of Red Funnel. Ed


Infracapital, the infrastructure equity investment arm of M&G Investments, announces that it has agreed to sell its 100% equity stake in Red Funnel, the original Isle of Wight ferry company, to a consortium of UK and Canadian pension schemes led by the West Midlands Pension Fund and the Workplace Safety and Insurance Board of the Province of Ontario.

Financial terms were not disclosed, and the transaction is expected to complete shortly.

Investment over ten years
Infracapital has owned Red Funnel since 2007 and has invested significantly in the business over the last 10 years to enhance both service and capacity.

The fleet has been considerably upgraded, and both the on-board experience and customer service have markedly improved with 93 percent of customers rating the Red Funnel services as Excellent or Good. In 2016, Red Funnel carried over 873,000 vehicles and 3.4 million passengers, compared to 555,000 vehicles and 3.0 million passengers in 2006.

Confident Red Funnel will continue to grow
Ed Clarke, Co Founder and Director of Infracapital, said:

“Red Funnel provides essential services to both residents of and visitors to the Isle of Wight and we are very proud to have supported the business over the last decade.

“The hard work of the management team and the investments we have made have yielded significant benefits to customers, the local community and its economy. We are confident that Red Funnel will continue to grow under its new ownership and wish the business and its employees every success.”

Michael Campbell, Director of the consortium, said:

“We are delighted to acquire Red Funnel in a partnership comprising UK and Canadian pension schemes. Red Funnel, which plays a critical role within its community, is led by a strong management team and a committed workforce who are dedicated to delivering reliable, safe, essential Isle of Wight ferry services.

“We are pleased to continue the tradition of investment in this proud 150 year old company.”

Fantastic customer feedback
Kevin George, CEO of Red Funnel, said:

“We are very grateful for the support provided by Infracapital and our customers over the last 10 years. Red Funnel has benefited hugely from a wide-ranging programme of investment and improvement, and I’m delighted that these are being recognised with fantastic customer feedback and repeat visitors.

“We are all excited to be working with the consortium as we continue to grow the business and provide safe and reliable ferry services, value for money and great customer service.”

See Q&A for further details


Friday, 30th June, 2017 12:01pm

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ShortURL: http://wig.ht/2fqz

Filed under: Business, Island-wide, Isle of Wight News, Top story

Any views or opinions presented in the comments below are solely those of the author and do not represent those of OnTheWight.

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8 Comments on "100% equity in Red Funnel sells to UK and Canadian pension schemes"

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Caconym
**“We are all excited to be working with the consortium as we continue to grow the business and provide safe and reliable ferry services, value for money and great customer service.”** How is £175 return for a small family car “value for money”? Rhetorical question as, quite clearly, it *isn’t* “value for money”. My concern is that “continue to grow the business” actually means further price increases… Read more »
doughnut

Add-ons such as a seat….

Caconym

Indeed.

Steve Goodman

Comments contradicting action, as usual (‘significant benefits to the local community and its economy’, ‘tradition of investment’, ‘huge benefits from a wide-ranging programme of investment and improvement’ – but no mention of the determined attempted greedy land and money grab needlessly harming local businesses, jobs, and residents or the equally determined refusal to improve their own E.Cowes site.)

iowdave

Significant that no Island investment company came forward despite rumblings in the past that at least one of the ferry companies should be Island owned.

Black Dog

Where is the comment from our illustrious MP?

His silence is just like that of the last incumbent

electrickery
If reports are to be believed, the new buyers paid 2.5 times the price at the last transfer. That probably means 2.5 x as much interest to pay in an environment of financial uncertainty and rising rates. Don’t expect any fare reductions any time soon – in fact, massive fare hikes are the only way the new owners will meet their investment returns. It’s a pity (!)… Read more »
Phil Jordan
electrickery: You are way off the mark on just about all of your comments. And *we* (Independents) did not attempt to “hijack” the local purchase (potential). Indeed, we were ultimately involved with serious investment funding. (there is a very clear and precise reason the Independent group could not move forward with the bidding at the time….nothing to do whatsoever with being “inept”) Note, of course, the vision… Read more »