John Menzies make £13.5m acquisition
John Menzies plc has announced its acquisition of Kent’s Orbital Marketing Services Group Limited.
Menzies’ newspaper and magazine wholesaling subsidiary will acquire Orbital, which is currently 51% owned by BP Direct Mail Company Limited and 49% by Rydlings Limited.
The deal is worth £13.5m, and will be completed at the end of 2014. A further £6.3m could be paid if exceptionally high levels of profit were achieved by December 2014.
Orbital has a portfolio of UK based logistics and marketing services serving the travel, tourism, education, charity, publishing and healthcare sectors.
The company was founded in 1972, and employs over 550 staff, with a reported operating profit for the year to March 2012 of £2.2m.
Iain Napier, Chairman of John Menzies plc, said: “I am delighted that Menzies Distribution has acquired Orbital. This acquisition allows us to expand our printed media distribution footprint whilst also taking a large stride into adjacent growth areas. The team are now focussed on integrating these new businesses and driving through the significant synergies that have been identified.
“Orbital opens up new opportunities for us. The combined network will bring new reach to our logistical capabilities and allow us to expand some of Orbital’s services into new areas.
“It has been our strategy to invest within both operating divisions where sustainable earnings can be created. While the majority of the Group’s expansion will continue to come from our industry leading Aviation services business, this acquisition allows Menzies Distribution to grow by enlarging its printed media distribution capabilities and opening up new markets with strong growth opportunities.”
This was posted in Bdaily's Members' News section by Tom Keighley .