9th Jun 2015 06:58
LONDON (Alliance News) - John Menzies PLC Tuesday bolstered its logistical services arm by buying Scotland-based AJG Parcels Ltd for GBP7.5 million in cash, a buy that moves it into a parcels market being driven by the increase in online shopping.
Menzies said AJG services over 3 million parcels a year in the Scottish Highlands and Islands, and is a so-called "neutral consolidator" that works in partnership with national parcel carriers to make the final mile delivery.
"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," Menzies Chief Executive Jeremy Stafford said.
"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," he added.
By Steve McGrath; [email protected]; @stevemcgrath1
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