To secure InPost’s route to market, InPost has acquired a 30% equity stake and 30% voting rights in Menzies in an all-cash transaction for £49.3m (US$63.6m).
InPost has a three-year option to acquire the remaining 70% equity stake, exercisable at any time during the option period. InPost will have two non-executive seats on the Menzies board of directors.
Menzies has a national network of over 100 depots that sees it deliver to over 47,000 locations every day. Menzies provides newstrade distribution services, B2B final-mile parcel delivery and full-load transportation and warehousing solutions. The business employs approximately 5,000 people and runs more than 3,200 vehicles. As a result of the transaction, Menzies’ ownership structure is as follows: 52% of the equity stake and voting rights is held by Endless, 30% held by InPost, 18% is held by other shareholders, including the current management of Menzies.
According to the companies, this agreement will mean that: InPost will have the ability to scale at speed to match increasing consumer demand; consumers will have a secure, low-cost and environmentally sustainable way of sending and receiving parcels; suppliers and publishers will have a fast, cost-effective, secure and sustainable route to the consumer; and retailers will have a new national sustainable and efficient alternative route to market. InPost will also be able to leverage operating synergies, including using existing routes and cross-utilization of assets and use the company’s capability to provide deliveries over 360 days a year.
Rafał Brzoska, CEO of InPost, said, “With this strategic transaction, we have reached a significant milestone, which represents an exciting opportunity for both our UK business and InPost Group as a whole. With Menzies, we can offer a unique service in the UK e-commerce market by delivering parcels over 360 days a year. We look forward to the transformative impact of this partnership.”
Michael Rouse, CEO international, InPost, 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. Acquiring a minority stake in Menzies will enable us to work as one with our distribution partner, sharing the same vision and ensuring that we aim for the same result. 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.”
Greg Michael, CEO of Menzies, said, “We are proud to partner 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 the future and supporting InPost’s next phase of growth in the UK.”
Read more key business diversification updates from the parcel and postal technology industry, here.