Nightfreight delivered into rival’s arms

WILLENHALL-based logistics firm Nightfreight has been taken over by a southern rival for an undisclosed sum.

It has been acquired by DX Group, which is based in Iver, Buckinghamshire. The acquisition has been funded from DX cash resources.

DX says the acquisition will create the UK and Ireland’s largest independent mail, courier and network distribution service.

Nightfreight is known for its niche offering in the irregular dimension and weight sector (IDW) – for both the business-to-business and business-to-consumer markets. Its services are seen as complementary to those of DX.

The DX and Nightfreight businesses will continue to run as separate entities, but with a co-ordinated approach to sales and marketing activity to allow both companies to leverage the full range of services. This will be underpinned by a standard, group-wide IT platform enabling DX to grow its customer base.

Combined revenue for the two businesses will be approximately £300m a year.

DX’s chief executive Petar Cvetkovic and chief financial officer Ian Pain have been appointed to the board of Nightfreight. They are joined by Stuart Godman, with whom Cvetkovic previously worked at Target Express and City Link, who becomes Nightfreight’s chief operating officer.

Peter Louden, a current Nightfreight director, will be continuing on the board as operations director.

Ian Smith, Nightfreight’s chief executive, will join the DX management team as the DX strategy director, leading a steering group seeking to align DX and Nightfreight’s services.

Cvetkovic said: “The acquisition of Nightfreight by DX represents an outstanding opportunity for both organisations’ customers and colleagues.  The combination creates a clear market-leader with scale and a more diversified customer offer.

“Our plan is to provide up to £20m of capital investment for Nightfreight over the next few years.”