Droitwich distribution firm bought out by Bibby

DROITWICH-based storage and distribution firm Atchison Topeka has been bought out by Bibby Distribution, the logistics arm of shipping group Bibby, for an undisclosed sum.

Liverpool-based Bibby said the deal would boost its market presence among food manufacturers and add £26m to its turnover.

Atchison Topeka will continue to trade under its own brand and management will be left to continue dealing directly with its blue chip customer base.

The company employs 170 staff and has two large warehousing facilities in Droitwich and Worcester, with a combined footprint of more than 150,000 sq ft.

Bibby said the deal came on the back of three consecutive record trading years for Bibby Distribution as it had grown both organically and via a number of acquisitions.

In the year to December 30, 2010, pre-tax profit was up by 21% to £7m on a turnover of £230m (2009: £185m).

Over the last four years, the company’s compound profit growth has been running at 25%.

“There were a number of key reasons that attracted us to Atchison Topeka,” said Iain Speak, chief executive of Bibby Distribution.

“We saw the opportunity to offer an increased range of services to our customers whilst realising further strategic growth for our own business.”