Edinburgh-based Menzies Distribution said it acquired London-based Gnewt Cargo, the all-electric delivery firm, for an undisclosed sum.

Gnewt, founded in 2008, provides final-mile delivery services in central London for retailers, e-tailers and parcel carriers such as Hermes and TNT.

Last year, it made more than three million deliveries in London using the UK’s largest all-electric fleet of commercial vehicles.

“The deal supports Menzies Distribution’s diversification strategy and progresses the company’s plans to extend its neutral parcel consolidation services across the UK and Ireland,” said Menzies Distribution.

Menzies said it also aims to offer Gnewt’s brand of environmentally-friendly distribution to existing customers “for whom more sustainable logistics support has a growing appeal.”

Menzies Distribution MD Greg Michael said: “As a holder of the Carbon Trust Standard since 2009, Menzies Distribution has long been focussed on our environmental responsibilities.

“Acquiring Gnewt was an exciting opportunity for us to advance our sustainability agenda whilst growing our neutral consolidation offer to the parcel market.

“Everyone recognises that goods need to be moved in and around congested city centres.

“The Gnewt model shows it can be done successfully whilst minimising environmental impacts.

“This acquisition gives us a stronger, cleaner presence in the London market and with our national reach, gives us a platform to introduce all-electric distribution to other city centres in the UK.”