InPost has acquired the remaining 70% of Menzies Distribution Limited for £60.4m (US$79m), giving it 100% control over Express and Newstrade operations.
Menzies Distribution Services (MDS), responsible for full-load transportation services and warehousing, will remain under the control of Endless LLP, with InPost retaining a 30% equity stake.
The acquisition builds on the strong commercial growth that InPost has shown in the UK – tripling its revenue in the UK market over the last year – and will allow the business to fulfill several strategic objectives:
- Gain full control over its UK logistics operations, allowing InPost to accelerate its plans for the implementation of new services in the UK market, including high-quality next-day B2C parcel locker service;
- Secure InPost’s position among the leading parcel locker service providers in the UK and allow the combined entity to take advantage of increasing consumer preference for lockers in the UK;
- The combined business provides a fast, more cost-effective and sustainable delivery system that will benefit merchants and consumers;
- Allow InPost to fully own the investment process and further upgrade logistics capabilities and improve quality KPIs.
Long-term partnership
InPost began its partnership with Menzies in 2023, acquiring a 30% stake in the company for £49.3m (US$64.5m). During the second half of 2023 and into 2024, InPost and Menzies collaborated under a commercial agreement, achieving significant milestones including setting up high-quality e-commerce parcel logistics.
Menzies’ logistics capabilities and operational synergies enabled InPost to achieve a 156% increase YoY in the UK parcel volume in H1 2024. Moreover, Menzies’ enhanced service enabled InPost to improve its quality KPIs.
Finally, the partnership has enabled innovations such as the recently launched B2C service called Collect, which allows e-commerce retailers to offer delivery to over 8,000 InPost lockers.
Meeting UK demand
Rafał Brzoska, CEO of InPost Group, said, “With this strategic acquisition, InPost fully in-sources logistics in the UK. With Menzies fully integrated, we are even better positioned to create an exceptional offering in terms of quality, price and convenience for both merchants and consumers. This acquisition ultimately creates a single integrated organization that can take advantage of the increasing consumer demand for locker deliveries in the UK and that will redefine how e-commerce delivery operates in this market.
“We would like to give a warm welcome to the whole Menzies team, including the Newstrade division – an established and renowned business in an industry we are excited to enter. We are proud of what that part of Menzies has achieved so far, and we look forward to working as one group to grow all aspects of the business.”
Neil Kuschel, InPost UK’s CEO added, “This transaction is a critical milestone in unlocking and accelerating the growth potential of InPost in the UK. As one company, we will be able to create a business designed to win in the UK and serve the B2C market at a faster rate as more consumers discover the benefits of delivery to our lockers. The acquisition helps bring together the strengths of both organizations and will build on the commercial progress made under the leadership and guidance of Greg Michael, Menzies Group CEO.”