Menzies Distribution boss says ‘there are significant opportunities to grow both businesses’
Bibby Line Group has sold its £150m distribution arm to Menzies Distribution in a move it says will strengthen its balance sheet for future investment.
Bibby Distribution was founded in 1985 as part of the Liverpool-based Bibby group. Today it has annual sales of over £150m, with a fleet of 1,800 vehicles and trailers operating from 38 sites.
It works in sectors from packaging to consumer products. Just this month it secured a three-year contract extension with Cambridgeshire-based cardboard manufacturer Jardin Corrugated.
Bibby has not disclosed the value of the Menzies deal.
John Cresswell, chief executive of Bibby Line Group, said: “Bibby Distribution has built its reputation as a high quality, safe and reliable logistics provider, and since the company was established in 1985, we have seen it grow from strength to strength.
“This strategic realignment of our portfolio represents a strengthening of the group balance sheet for future investment.
“I want to thank all our Bibby Distribution colleagues for their hard work and successes, and the value they have added to customers and our group and we wish them well under new ownership.”
Richard Morson, chief executive of Bibby Distribution, said: “Menzies is the ideal partner for taking Bibby Distribution’s achievements of the last 35 years to the next level.
“Our shared values of outstanding reliability, strong relationships and heritage underpin the compelling prospect of an enlarged group taking the lead on quality and innovation in UK logistics.
“Menzies’ smart approach to supply chain solutions for its customers and pioneering investment in electric vehicle technology show it is a truly future-focused business and we are very much looking forward to embarking on this new journey.”
Menzies can trace its history back to 1833, when John Menzies founded his bookselling business. Menzies Distribution was sold to Endless LLP in 2018 in a £74.5m deal.
After the Bibby deal, the enlarged Menzies group will have almost 5,000 employees, 4,000 vehicles and 100 depot locations.
Greg Michael, chief executive of Menzies, said: “We are delighted to acquire Bibby Distribution. We believe that through combining the complementary business with Menzies, there are significant opportunities to grow both businesses through unlocking further geographical capability and expanding services to both sets of customers.
“For both our businesses’ customers, it will be very much business as usual and we look forward to supporting their growth in the coming years and working with the team at Bibby Distribution to help deliver this.”