Menzies Distribution has vowed to continue its growth and diversification strategy as an independent company after parent John Menzies completed the logistics provider’s sale to funds managed by Endless for £74.5m.
John Menzies originally announced the proposal to dispose of the £1.1bn turnover business on 26 July. The company’s shareholders gave the deal the nod on 22 August.
Greg Michael, managing director of Menzies Distribution, called completion of the deal “great news”.
He said becoming an independent company enabled it to be in control of its own destiny “and reinvest to fulfil our ambitious growth and diversification plans for the business”.
The business signed a contract in June to collect and deliver all daily and regional weekly newspapers printed by Reach, the UK’s largest news publisher, and distribute to 60 wholesale distribution sites across the UK.
Michael said this was “an example of our successful diversification strategy in action”.
Aidan Robson, partner at Endless, said Menzies Distribution, which distributes more than seven million publications daily and has 55 sites across the UK and Ireland, represented the UK private equity investor’s largest investment to date.
“We look forward to working closely with Greg and the rest of the management team to deliver our shared vision for this business,” said Robson.
Menzies Distribution began a diversification strategy two years ago in which it harnessed its UK and Ireland network to work with national parcel carriers and provide what it describes as “innovative” solutions for the retail sector.
John Menzies admitted in May that the sale of its distribution business was “taking longer than anticipated”.
It said at the time the distribution arm had suffered a 5% sales decline within the print media category against the same period last year.
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