Parcels locker service InPost has acquired the remaining 70% stake in Menzies Distribution in a deal described as a ’milestone in unlocking and accelerating the growth potential’ for the e-commerce logistics business in the UK.
The £60.4 million deal gives InPost full control over Menzies’ Express and Newstrade logistics operations.
The third segment, MDS, responsible mainly for full load transport and warehousing was demerged from Menzies and is not the part of the transaction. It will continue to be run by its existing management team and InPost will retain a 30% shareholding in MDS.
The move follows significant commerical growth for InPost which has trebled its revenue in the UK over the past year – and it says that the move will allow the business to fulfil several strategic objectives:
- It says that the transaction gives the business full control over its UK logistics operations, allowing it to accelerate plans for new services in the UK, including, a next day business to consumer (B2C) parcel locker service.
- It secures InPost’s position among the leading parcel locker service providers in the UK and allows the combined entity to take advantage of increasing consumer preference for lockers in the UK.
- The combined business will provide a fast, more cost-effective and sustainable delivery system, it says, which will benefit both merchants and consumers.
- It allows InPost to fully own the investment process and further upgrade logistics capabilities as well as improve quality KPIs.
InPost began its partnership with Menzies in 2023, acquiring a 30% stake in the company for £49.3 million. During the second half of 2023 and into 2024, InPost and Menzies collaborated under a commercial agreement, which allowed InPost to achieve a 156% year-on-year increase in UK parcel volume in the first half of 2024.
It also allowed innovations such as the recently launched B2C service called ‘Collect’, where e-commerce retailers are now able to offer delivery to over 8,000 InPost Lockers.
Rafał Brzoska, chief execuive of InPost Group, says: “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 organisation 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.”
Neil Kuschel, InPost UK’s chief executive adds: “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.”
