John Menzies buys Scottish Highlands parcel firm

John Menzies buys Scottish Highlands parcel firm

John Menzies plc has bought AJG Parcels Limited (AJG), which operates in the Scottish Highlands and Islands. The acquisition was made through the logistical services subsidiary, Menzies Distribution, for a cash consideration of £7.5m.

In a statement issued yesterday, John Menzies said that the acquisition of AJG Parcels forms an important step in realising the potential of its Distribution business, as the company “seeks to participate in the growing e-commerce parcel market by better utilising [its] asset base during daylight hours”.

AJG has a purpose-built 10,000 sq ft hub in Inverness, and offers express delivery throughout the Highlands.  It also has a similar-sized regional hub in Linwood, outside Glasgow, servicing the Argyll area.
AJG also has a network of 13 satellite depots providing next-day delivery as far as the Western Isles and Orkney.

The company, which was founded 20 years ago, makes around 3m deliveries and 300,000 pick-ups each year. It has 140 staff and a fleet of more than 100 vehicles, and has provided the final stage of delivery in Scotland for carriers including DPD, APC, UPS and UK Mail.

Forsyth Black, managing director at Menzies Distribution, said: “The purchase of AJG is an important step in our ongoing journey to build on our newspaper and magazine distribution business. It is especially significant because it allows us to participate in the fast-growing market of parcel delivery and collection.

“With our existing geographical reach, especially in harder to access towns, the acquisition further underlines our appeal to companies seeking cost-efficient deliveries to the North and rural West of Scotland.

“We believe that, by acting as a neutral consolidator in these areas, we can offer a compelling partnership proposition to the UK’s major parcel carriers.”

Menzies Distribution currently handles over 100m delivery units a year.

Jeremy Stafford, Chief Executive of John Menzies plc, said: “We are delighted to diversify into the growing e-commerce parcel market. This acquisition allows us to collaborate with the national carriers and use our existing footprint, in the more hard-to-reach territories, to act as a cost effective neutral delivery and collection agent.

“Leading on from this acquisition I look forward to sharing our wider strategy for our Distribution business at the time of our interim Results in August.”

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