Menzies Distribution Limited
We completed the £74.5 million acquisition of Menzies Distribution Limited (‘Menzies Distribution’) from John Menzies plc on 4 September 2018. With turnover in excess of £1.1 billion, strong earnings and cash generation, this is our largest investment to date from Endless Fund IV and is the latest in a long line of acquisitions of non-core businesses from large corporate vendors.
Menzies Distribution operates one of the largest overnight time-critical logistics networks in the UK and Ireland, providing final mile delivery for over 100 million units each year and serving customers in the press, travel and third-party logistics sectors. While its core business involves strategic partnering with publishers to provide a sustainable route to market for their product, two years ago the company began a successful diversification strategy harnessing its unique UK and Ireland network capabilities to work with national parcel carriers and to develop an innovative solution for retailers.
Employing approximately 3,700 people across 56 sites, throughout the UK and Ireland, the business distributes over seven million newspapers and magazines each day.
Greg Michael, managing director of Menzies Distribution, said: “This is great news for Menzies Distribution. Whilst it’s business as usual, becoming an independent company enables us to be in control of our own destiny and reinvest to fulfil our ambitious growth and diversification plans for the business.
“The recent major UK-wide primary trunking contract to collect and deliver all daily and regional weekly newspapers printed by Reach plc is as an example of our successful diversification strategy in action.”
Aidan Robson, Partner at Endless added: “Menzies Distribution is a highly profitable business with an enviable record of strong cash generation and is a truly exciting acquisition. We look forward to working closely with Greg and the rest of the management team to deliver our shared vision for this business.”