John Menzies pays £1.2m for travel-focused Media on the Move

JOHN Menzies will boost its presence in the travel distribution market following a seven-figure takeover deal.

The venerable Edinburgh-based group yesterday said it was paying just under 1.2 million to acquire Media on the Move (MOTM), which specialises in marketing and distribution services to airports, airlines and the wider travel industry.

Unveiling the deal, Paul Dollman, group finance director, said: "The acquisition accelerates Menzies expansion in the delivery of print media and related services to the travelling consumer.

"MOTM will be integrated with Menzies existing Reed Aviation and Menzies Travel Media businesses to create one entity that will deliver significant service and synergy benefits."

The Scots firm - which traces its roots back to 1833, when John Menzies opened a bookshop on Edinburgh's Princes Street - is buying the business from Journey Group, described as a "leading provider of in-flight products and catering services to the international airline and travel industry".

For the year ended 31 December, MOTM's turnover was 2.6m and its profit on ordinary activities before deducting group charges and taxation amounted to 93,676.

Stephen Yapp, Journey's executive chairman, said: "The price achieved for the disposal of Media on the Move reflects the significant operational progress made in this business over the last few years.

"This is an important next step in Journey's strategy of disposing of non-core businesses. The cash received, together with the new banking facilities announced in May, strengthens the resources available to the group to invest in growth opportunities that can generate superior returns."

Earlier this week, Menzies said new contract wins at its aviation division had put it on course to land profits that will "exceed the board's expectations".