InPost buys Menzies Distribution stake; may buy 100%

Polish firm InPost announced it bought a 30% equity stake and 30% of voting rights in Edinburgh-based Menzies Distribution for £49.3 million in cash.

InPost will have two non-executive seats on the Menzies Distribution board.

InPost CFO Adam Aleksandrowicz said in a conference call the deal includes a three-year option to acquire the remaining 70% of Menzies Distribution, which InPost will “seriously consider” at some point in time.

After InPost’s 30% stake, Menzies Distribution will be 52%-owned by Leeds private equity fund Endless LLP, and 18%-owned by other shareholders including management.

Menzies Distribution employs about 5,000 people.

“I would probably look at this investment as the first step of securing the mid-to-long term perspective of owning our own logistics in the UK,” said the InPost CFO.

InPost International CEO Michael Rouse 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.

“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.”

Private equity fund Endless LLP bought Menzies Distribution from Edinburgh-based global aviation services business John Menzies plc in 2018 for an enterprise value of £74.5 million.

John Menzies itself accepted a £571 million cash takeover offer last year from Kuwait-based National Aviation Services (NAS), a subsidiary of Agility Public Warehousing Company.

The offer of £6.08 per share represented a premium of 81% to the John Menzies closing share price of £3.35 on February 8, 2022, the last business day prior to the offer period.