Parcel locker service InPost has acquired the remaining 70% stake in Menzies Distribution Limited, the Express and Newstrade segments, in an all-cash transaction valued at £60.4 m.
The third segment, MDS, responsible mainly for full load transport and warehousing was demerged from Menzies and is not the part of the transaction. It will continue to be run by its existing management team and InPost will retain a 30% sharehold.
The expansion follows significant commercial growth for the company, as it tripled its revenue in the UK market over the last year. It will allow the business to fulfil several strategic objectives:
- This transaction gives InPost full control over its UK logistics operations, allowing the company to accelerate its plans for implementation of new services in the UK market, including, high-quality next day B2C parcel locker service.
- It secures InPost’s position among the leading parcel locker service providers in the UK and allows the combined entity to take advantage of increasing consumer preference for lockers in the UK.
- The combined business provides a fast, more cost-effective and sustainable delivery system that will benefit both merchants and consumers alike.
- It allows InPost to fully own the investment process and further upgrade logistics capabilities as well as improve quality KPIs.
The Newstrade division, responsible for delivery of newspapers and magazines, will continue to operate as before, delivering the highest quality service to UK publishers and retailers.
Menzies operates across a unique national network reaching every postcode in the UK and Ireland. With an experienced management team and the capability to provide services 360+ days a year, the Menzies brand provides reach and reliability.
InPost began its partnership with Menzies in 2023, acquiring a 30% stake in the company for £49.3 million. During the second half of 2023 and into 2024, the two companies collaborated under a commercial agreement, achieving milestones including setting up high-quality e-commerce parcel logistics.
Menzies’ logistics capabilities and operational synergies enabled InPost to achieve a 156% increase YoY in the UK parcel volume in H1 2024. Moreover, Menzies’ enhanced service enabled InPost to improve its quality KPIs.
It has also allowed innovations such as the recently launched B2C service called ‘Collect’, where e-commerce retailers are now able to offer delivery to over 8,000 InPost Lockers.
Rafał Brzoska cheif executive of InPost Group explained that with this acquisition, InPost now fully insources logistics in the UK: With Menzies fully integrated, we are even better positioned to create an exceptional offering in terms of quality, price and convenience for both merchants and consumers. This acquisition ultimately creates a single integrated organization that can take advantage of the increasing consumer demand for locker deliveries in the UK and that will redefine how e-commerce delivery operates in this market.
Neil Kuschel InPost UK’s chief executive commented on the expansion: “This transaction is a critical milestone in unlocking and accelerating the growth potential of InPost in the UK. As one company, we will be able to create a business designed to win in the UK and serve the B2C market at a faster rate as more consumers discover the benefits of delivery to our lockers. The acquisition helps bring together the strengths of both organisations and will build on the commercial progress made under the leadership and guidance of Greg Michael, Menzies Group CEO.”
No comments yet