Polish firm buys stake in Edinburgh-based Menzies Distribution in £50m deal

A Polish-based parcel delivery and locker provider has snapped up a 30 per cent slice of Edinburgh-headquartered peer Menzies Distribution Group, with the option to take full ownership at a later stage.

Poland's InPost says it has 1.5 million parcel lockers worldwide. Picture: contributed.

InPost, which says it is Europe’s leading out-of-home delivery provider, has bought the minority stake and 30 per cent voting rights for just shy of £50 million, and the all-cash transaction includes a three-year option to acquire the remaining stake, exercisable at any time during the option period. InPost will also have two non-executive seats on the board of Menzies.

The deal follows an exclusive logistics partnership between the two companies, with Menzies becoming InPost’s logistics provider in the UK earlier this year. It is expected that Menzies’s nationwide footprint will enable InPost to scale at speed to match growing consumer demand, and staff from both firms “will be part of a fast growing, sustainable business”.

Menzies says it is a specialist time-critical logistics provider, with a national network of more than 100 depots and delivering to in excess of 47,000 locations every day, also boasting about 5,000 staff and running more than 3,200 vehicles.

Greg Michael, chief executive 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, boss of Amsterdam-listed 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.”

Menzies Distribution was previously part of John Menzies, one of Scotland’s oldest companies dating back to 1833, but the latter in 2018 sold off its distribution business to focus on aviation activities. Now, 52 per cent of Menzies Distribution is owned by private equity house Endless LLP, with 18 per cent held by other shareholders, including its own current management.