DX Group Limited, the UK and Ireland independent mail, courier and logistics network operator, has today completed the acquisition of Nightfreight. The acquisition has been funded from DX cash resources and terms have not been disclosed.
Nightfreight is a leading logistics business, with a particular niche in the irregular dimension and weight sector (IDW) for both the business-to-business and business-to-consumer markets. Its services are complementary to those of DX. The acquisition will create the UK and Ireland’s largest independent mail, courier and network distribution service, providing the broadest range of capabilities to business Customers.
Customers will have access to a full range of mail and courier services, including sending large and heavy items, two-man deliveries, core logistics and warehousing solutions. The acquisition, combined with last month’s opening of a state-of-the-art parcel sorting and distribution centre in Warrington, gives DX the capability to satisfy growing market demand.
The DX and Nightfreight businesses will continue to run as separate entities, but with a co-ordinated approach to sales and marketing activity to allow both companies to leverage the full range of services. This will be underpinned by a standard group wide IT platform enabling DX to grow its Customer base. Combined revenue for the two businesses will be approximately £300m a year.
DX’s chief executive, Petar Cvetkovic, and chief financial officer, Ian Pain, have been appointed to the Board of Nightfreight. They are joined by Stuart Godman, with whom Petar previously worked at Target Express and City Link, who becomes Nightfreight’s chief operating officer. Peter Louden, a current Nightfreight director, will be continuing on the Board as operations director.
Ian Smith, Nightfreight’s chief executive, will join the DX management team as the DX strategy director, leading a steering group seeking to align DX and Nightfreight’s culture, processes, standards and services, and to share best practice that strengthens both businesses.
Cvetkovic, says: “The acquisition of Nightfreight by DX represents an outstanding opportunity for both organisations’ Customers and colleagues. The combination creates a clear market-leader with scale and a more diversified Customer offer. We are now capable of delivering everything from a letter to a complete bedroom suite with king size bed – including the assembly and installation – through our 2-Man “white glove” premium delivery service. The enlarged business is set to generate profitable growth and will be much better positioned to satisfy growing demand from our new and existing Customers. Together, we can build a sustainable business to compete more effectively in the courier and network distribution market.
“Our first priority is to work with Customers and colleagues to reassure them of the fantastic opportunity this deal provides for them. It will ensure investment in Nightfreight’s infrastructure, network and IT capability, thereby improving service levels for its impressive Customer base. Our plan is to provide up to GBP20m of capital investment for Nightfreight over the next few years.
“DX is in the process of launching a number of strategic initiatives which will provide tangible benefits for all our Customers. This will also create an exciting future for colleagues in both businesses, all of whom are vital in delivering market leading Customer service.
“I would like to take this opportunity to thank Arle Capital Partners and our other stakeholders in their support for this acquisition.”
