1995-09-01 Watts welcomes sale of BR timber treatment business (Department of Transport)

1995-07-26 BR sells first civil engineering design office (Department of Transport)

1995-07-10 Watts greets sale of BR manufacturing business (Department of Transport)

1995-06-05 Mawhinney welcomes sale of major rail businesses (Department of Transport)

_______________________________________________________________

date 5 September 1995
source Department of Transport
type Press release

note 277

The sale of British Rail's Red Star express parcels business to a
management buy-out team was announced today by John Watts, Minister
for Railways and Roads.

Welcoming the sale, Mr Watts said:

"Throughout the British Rail privatisation the Government's aim has
been to combine value for money for the taxpayer with the best
prospects for the rail industry and its staff. Red Star is no
exception. With the backing of City institutions, the sale to the
management team offers the business its best chance of developing
what are considerable competitive advantages.

"Red Star is a special rail business able to offer a nationwide
premium service. I want to see this business continue by making a
fresh start under private ownership. Away from the constraints of
the public sector it will be free to build on its existing strengths
and develop new services and products."

Using space on passenger trains, Red Star offers a nationwide express
service from 'Parcel Points' at stations. In early 1994 the business
was reorganised to focus on the premium end of the parcels market,
where the speed advantages of rail are most significant. The parcels
service had a revenue in 1994/95 of more than #20 million. Mr Watts
continued: "I welcome the fact that the business has been sold to the
management team. Their specialist railway knowledge and the
commercial experience of their financial backers will give the
business the best possible launch in the private sector.

"This sale is good news for Red Star's customers, staff, and the
taxpayer who will no longer have the burden of a historically
loss-making operation."

Notes to editors

1. The British Railways Board reached agreement in principle for the
sale of Red Star express parcels business to a Management buy-out
(MBO) team on 3 August, subject to the approval of the Secretary of
State for Transport.

# = pounds sterling

Railhub Archive ::: 1995-09-05 DoT-001