Deal follows collapse of DX takeover
Menzies Distribution acquires Gnewt Cargo
Gnewt, which was founded in 2008, provides final-mile delivery services in central London for retailers, e-tailers and parcel carriers such as Hermes and TNT.
Last year, it made over three million deliveries in London using the UK’s largest all-electric fleet of commercial vehicles.
The deal supports Menzies Distribution’s diversification strategy and progresses the company’s plans to extend its neutral parcel consolidation services across the UK and Ireland.
It comes just weeks after the collapse of its proposed reverse takeover of DX Group.
Greg Michael, managing director, said: “As a holder of the Carbon Trust Standard since 2009, Menzies Distribution has long been focussed on our environmental responsibilities.
“Acquiring Gnewt was an exciting opportunity for us to advance our sustainability agenda whilst growing our neutral consolidation offer to the parcel market.
“Everyone recognises that goods need to be moved in and around congested city centres. The Gnewt model shows it can be done successfully whilst minimising environmental impacts.
“This acquisition gives us a stronger, cleaner presence in the London market. and with our national reach, gives us a platform to introduce all-electric distribution to other city centres in the UK.”
In recent years, Menzies Distribution has substantially invested in and diversified its operations beyond the traditional newspaper and magazine distribution market, gaining ground in e-commerce and logistics growth sectors over the last 18 months. Menzies Parcels now delivers more than three million items per year.
Menzies has also strengthened its portfolio of retail logistics contracts, which include the three year national contract for WH Smith’s national network of 1200 stores, and a UK-wide contract with catering equipment supplier Nisbets.
In May, Menzies purchased the Irish distributor EM News Distribution in a €3.6m buy-out, strengthening its Irish market position as the company seeks to expand its logistics offering across the whole of Ireland.