Deal extends distribution network

John Menzies buys Highlands firm AJG for £7.5m

AJG ParcelsDistribution company John Menzies has acquired the Inverness-based firm AJG Parcels in a £7.5 million deal that will expand its presence in the Highlands and in the e-commerce parcel market.

AJG, which began as a husband and wife operation 20 years ago, is now the key provider of collection and delivery services in the Highlands, Islands and Argyll where its 100 vehicles deliver three million parcels a year. It employs 140 staff.

It has a new, purpose-built 10,000 sq ft headquarters in Inverness and a hub in Linwood, which provides links to the depots in Dunoon, Lochgilphead, Oban and Fort William.

Thirteen satellite depots offer a next day delivery service to many outlying areas, including the Western Isles and Orkney.

Menzies Distribution currently handles more than 100m parcels a year and said the all-cash deal “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.”

Jeremy Stafford, Menzies’ chief executive, 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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