Amtrak acquires Nightspeed
Amtrak Express Parcels Ltd has today announced that it has acquired the business and assets of Nightspeed Services Ltd for an undisclosed sum. Nightspeed has been experiencing financial difficulties in recent months and went into administration earlier today. Amtrak had been in discussion with Nightspeed as one of a number of acquisition targets and was able to move quickly to bring certainty to the company and over 900 staff.
As Iain MacRitchie Amtrak’s Chairman commented, “Given the strength of the Amtrak brand and market position, we have been working for over 12 months on ways in which to consolidate the express parcels sector to give us a network capable of competing with the multi-national players. With our knowledge of the business and the potential synergies, we have been tracking Nightspeed for some time. The deal has come earlier than expected but with the strength of the team we have, we were able to step in and help provide the solution to acquire all the assets and take on all the staff.” As Jonathan Smith, Amtrak’s Chief Executive commented, “Amtrak has had increasing success in the home delivery sector and we are very proud of the unique service we have created. It is now our intention to build on Nightspeed strengths in the secure overnight delivery market. We will be working closely with the management and staff of Nightspeed over the coming months and we have a detailed integration plan which will benefit our customers. The combined resources will produce financial savings and I believe the two businesses are complimentary and together will make a dynamic organisation.”
Ian Pickford, Managing Director of Nightspeed added, “Over the past 22 years Nightspeed has provided customers with great national and international services. There is no doubt we have a high quality business and workforce and I am delighted that another quality company like Amtrak has acquired the business. With increasing competition in the overnight sector, it was becoming clear that a smaller business like Nightspeed would not survive on its own but now it is part of a larger network we have a chance to flourish.” Amtrak also announced the formation of a Group structure which MacRitchie will Chair and Smith becomes Group CEO. Philip Jones becomes Group Finance Director in addition to his role as Amtrak Finance Director. The Group will coordinate and manage the integration function of the 2 networks in addition to looking at further acquisition opportunities in a fragmented overnight express parcels sector.
ABOUT AMTRAK EXPRESS PARCELS Amtrak Express Parcels was formed in 1987 and privately run until a buyout by 3i in 1998. In 2002 Jonathan Smith was appointed as Managing Director and Iain MacRitchie as Non-Executive Chairman. The management led a return to profit in 2003/2004 and the company secured a number of key contracts. Amtrak has had particular success in the growing home delivery sector with well known clients including Laura Ashley, Misco, Watford Electronics, Empire Direct, Direct Wines and Comet. Amtrak is evocative of the American railroad operator but there is no link between the companies. The Amtrak name came from morning deliveries (am) and barcode tracking (trak). Amtrak has also been an industry leader in the application of technology, including the Internet, imaging and wireless communications. Amtrak operates from over 100 locations in the UK with coverage that allows morning deliveries to be made nationwide. Backed by 1000 delivery vans and 180 trunk vehicles, the extensive network is predominately franchised giving a strong local business base. With the high levels of commitment by self-owned businesses and a high degree of flexibility, the franchisees are proving to be a vital ingredient for success in the home delivery sector. Amtrak deliver a large amount of electronic goods such as computers and mobile phones, as well as electrical appliances, food, wine and flowers. These goods require special care and Amtrak has specialist handling systems for ensuring these delicate items arrive in pristine condition.
Nightspeed Press Release:
AMTRAK ACQUIRES NIGHTSPEED
We are pleased to announce that as of 16 August 2005, Amtrak Express Parcels Ltd has acquired Nightspeed Services Ltd in a move that will strengthen Nightspeed’s special position in the secure overnight delivery market.
Since Amtrak was established in 1987 the company has concentrated on growing market share and developing unique services to meet the changing needs of its customers, specialising in the movement of time critical or fragile high value consumer goods to home and business addresses.
Our two organisations will work closely together to ensure the highest standards for our customers.
In particular:
• Service Performance: Amtrak has one of the most extensive depot networks in the UK, which is a key strength in consistently achieving sector leading delivery performance. We will also be utilising large parts of the existing Nightspeed network;
• Product Offering: With the recent development of home shopping, Amtrak has introduced a range of services which have made it the industry leader in the home delivery market;
• Value for Money: As a Nightspeed customer you will recognise the value of a high quality service and the cost effectiveness of the price you currently pay. Our commitment is that your current rates will not be increased as a result of this acquisition and will only be reviewed in accordance with the arrangements historically applied by Nightspeed;
• Contacts and Relationships: In any service arrangement, personal relationships are a key consideration. We are content that the professionalism and cultures of our two businesses are such that our customers will continue to receive the highest standard of account management and customer care.
You will see no change to the operation or service options available to you and please continue to contact your customer service support via the usual methods. However, should you have any specific queries relating to this matter, please do not hesitate to contact Ian Pickford, Alastair Meikle or your account manager or visit http://www.amtrak.co.uk and click on Nightspeed.
Amtrak deal delivers 900 from dole
Birmingham Post, First, Sec. Business, p 19 08-19-2005
By By John Revill Business Staff
About 900 jobs have been saved at Black Country distribution firm Nightspeed after it was bought from the administrators.
Amtrak Express Parcels has acquired the business and assets of Nightspeed Services, which has its head office and a sorting office in Tipton.
Nightspeed, which was set up 22 years ago, was taken into administration on Tuesday after experiencing financial difficulties. Ernst & Young took control of the business which was sold to Amtrak for an undisclosed sum.
Jonathan Smith, Amtrak's chief executive, said the two companies were complimentary and there were unlikely to be any job losses following the takeover.
There are 250 people based at the Tipton site which is the main centre that covers the Midlands, with the remainder working at 22 depots across Britain.
Amtrak, which is based in Bristol, had been looking at acquiring Nightspeed over the last two years and launched its offer after being contacted by the administrators Ian Pickford, managing director of Nightspeed, added: "There is no doubt we have a high quality business and workforce and I am delighted that another quality company like Amtrak has acquired the business.
"With increasing competition in the overnight sector, it was becoming clear that a smaller business like Nightspeed would not survive on its own, but now it is a part of a larger network we have a chance to flourish."
Mr Smith said: "We believe our two companies can work together to create greater scale and leverage our advantages in our different markets.
"Amtrak has carved out a niche in business to home deliveries, while they have a different niche in secure delivery of high value parcels.
"They have very high service levels and have won many awards. The only problem they faced was that they weren't really big enough.
"We'd like to think they are small but perfectly formed."
Amtrak, which is no relation to the American rail network, currently has around 100 sites around Britain, including distribution centres in Coventry, Shrewsbury, Telford, Stoke, Hereford, Worcester and Wolverhampton, as well as a hub and centre at Aldridge.
Mr Smith said the firm was now drawing up a strategy about how to integrate the two businesses, but said there were no plans at the moment to reduce the number of sites while the Nightspeed name would be retained.
He said: "We have both got something the other one wants. We have more depots than any other similar company, and we want to increase that number.
"Because we concentrate on home delivery, we can provide a better service if we are located closer to our customers.
"Of course if there are two sites on the same street we will have to look at it, but there is no preordained plan to close any of the Nightspeed sites."
Amtrak, which has a turnover of around pounds 69 million, would now benefit from the greater scale following the addition of Nightspeed, Mr Smith added.
He said: "We will now be a pounds 100 million business, which will help a great deal.
"It is also very pleasing to have saved 900 jobs, where there was a real danger they were going to go.
"It is now our intention to build on the Nightspeed's strengths in the secure overnight delivery market. We will be working closely with the management and staff of Nightspeed over the coming months and we have a detailed integration plan which will benefit our customers.
"The combined resources will produce financial savings and I believe the two business are complimentary and together will make a dynamic organisation
