Palletower, the UK’s leading supplier of storage and logistics equipment, has continued its growth strategy with the asset purchase from long time competitor Rotom Cargopak Ltd of their rental customers and stock. This strategic asset purchase marks the sixth acquisition for the group within the last 18 months, signalling a period of rapid expansion and diversification aimed at taking the business toward a £50 million turnover goal.
The deal follows Rotom Cargopak’s decision to exit the metal sector to focus its UK strategy on the timber and plastic pallet sectors. For Palletower, the acquisition integrates a significant customer base and product range into its existing operations, which already include over 100 product lines such as roll cages, trolleys, and stillages.
Matthew Palmer, owner and managing director of Palletower, said:
“Cargopak have been a long established presence within the UK storage and logistics equipment sector. They have an impressive product range and customer base and we are thrilled to have been able to bring this deal together. We are looking forward to working with and developing our expanded customer base over the coming year.
“This strategic acquisition alongside our recent acquisitions within the industrial racking and shelving industry continues our rapid diversification and growth.”
Beyond its core pallet and rental business, Palletower is continuing to diversify through its separate entity, Racking and Shelving Ltd, with their acquisition strategy heavily centred on this sector to fuel rapid growth. These integrated businesses currently contribute £5 million in annual turnover.
Over the next 12 to 18 months, the business intends to transition its racking and shelving acquisition plan from a northern focus to a full countrywide service, mirroring the national reach of the main Palletower business.
The business vision is to provide a comprehensive “start to finish” solution for the modern warehouse.
Matthew added: “It doesn’t matter whether a client operates a traditional pallet-in/pallet-out facility or a high-velocity, online small-pick warehouse, we can provide the full range of products they need – from the racking and shelving infrastructure to the pallets and stills used to move products to the end user.”
Looking to the future, the business is exploring a significant push into plastic moulding within the UK. By investing in domestic moulding, Palletower aims to bring production back to the UK that was traditionally handled overseas. This move is expected to provide customers with faster access to stock while also delivering environmental benefits and supporting the UK economy while meeting the increasing demand for sustainable logistics solutions.
While the current acquisition focus is UK-centric, Palletower continues to leverage a massive international footprint, exporting to more than 35 countries. The business maintains established warehouse operations in Finland and the Czech Republic, providing critical access to the Baltics and Southeastern Europe.
Matthew added: “This strategic acquisition, alongside our recent acquisitions within the industrial racking and shelving industry, continues our rapid diversification. We continue to explore acquisition opportunities across the UK to further enhance the services we provide, including warehouse design and fit-out.”
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