John Menzies plc is pleased to announce the earnings enhancing acquisition of AJG Parcels Limited (AJG), by its logistical services subsidiary Menzies Distribution, for a cash consideration of £7.5m.
Menzies Distribution currently handles over 100m delivery units per annum and is expert in time critical logistics management. The acquisition of AJG Parcels forms an important step in realising the potential of our Distribution business, as we seek to participate in the growing e-commerce parcel market by better utilising our asset base during daylight hours.
AJG services over 3m parcels per annum in the Scottish Highlands and Islands, and is a neutral consolidator working in partnership with the national parcel carriers for final mile delivery. This acquisition offers opportunities to scale the business across our wider network.
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.”