Endless-backed Menzies delivers £50m deal and sets out exit route

European parcel delivery group InPost has acquired a 30% stake in Edinburgh-based Menzies Distribution, in which Leeds-based private equity firm Endless is a majority shareholder, for £49.3m.

The deal includes a three-year option to buy the remaining 70% of the company which employs about 5,000 people providing newspaper distribution, business-to-business final mile delivery, and other transportation and warehousing services.

It follows an agreement earlier this year in which Menzies became InPost’s exclusive logistics provider in the UK.

The road haulage business was sold by its parent company to private equity group Endless for £74.5m less than five years ago.

Menzies Distribution was previously part of John Menzies, one of Scotland’s oldest companies dating back to 1833.

Now, 52% of Menzies Distribution is owned by Endless, with 18% held by other shareholders, including its own current management.

Greg Michael, CEO of Menzies Distribution, said: “We are proud to partner with InPost and are excited about the opportunities this will create for our clients, our business, and our people. InPost and Menzies are uniquely positioned to deliver fast, sustainable delivery and returns in the UK benefiting consumers, retailers, suppliers, and our colleagues. We look forward to the future and supporting InPost’s next phase of growth in the UK.”

Michael Rouse, CEO of InPost International, said: “This relationship marks an important next step in InPost’s journey as we look to strengthen our position as the UK’s leading out-of-home delivery provider. Menzies has one of the largest time-critical delivery networks in the UK and we are excited by how the collaboration will enable us to accelerate our growth and the service we can offer our customers.”