Last Mile Brief 20/07/2023: InPost acquires 30% stake in UK Logistics firm Menzies Distribution
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InPost has acquired a 30% equity stake and 30% voting rights in Menzies in an all-cash transaction for £49.3 million. The Polish parcel locker giant has a 3-year option to acquire the remaining 70% equity stake, exercisable at any time during the option period. InPost adds that it will have two non-executive seats on the Menzies Board of Directors.
Menzies sports a national network of over 100 depots that sees it deliver to over 47,000 locations every day, stresses InPost.
Menzies provides newstrade distribution services, B2B final mile parcel delivery, and full load transportation and warehousing solutions. The business employs approximately 5,000 people and runs more than 3,200 vehicles.
InPost says the key benefits of the transaction for the company are as follows:
- the nationwide network coverage with high density
- capacity headroom allowing for growth without immediate capex
- leveraging operating synergies, including using existing routes and cross-utilization of assets
- the capability to provide deliveries over 360 days a year
- Menzies being a profitable and cash generative business
As a result of the transaction, Menzies’ now has the following ownership structure:
- 52% of the equity stake and voting rights is held by Endless LLP
- 30% held by InPost
- 18% held by other shareholders, including the current management of Menzies
Commenting on the deal, Rafał Brzoska, CEO of InPost, said:
“With this strategic transaction, we have reached a significant milestone, which represents an exciting opportunity for both our UK business and In Post Group as a whole. With Menzies we can offer a unique service in the UK e-commerce market by delivering parcels over 360 days a year. We look forward to the transformative impact of this partnership.”
Greg Michael, Menzies’ CEO, added:
“We are proud to partner with InPost and are excited about the opportunities this will create for our clients, our business, and our people. In Post and Menzies are uniquely positioned to deliver fast, sustainable delivery and returns in the UK benefiting consumers, retailers, suppliers, and our colleagues. We look forward to the future and supporting In Post’s next phase of growth in the UK.”