John Menzies plc subsidiary Menzies Distribution has acquired Orbital Marketing Services Group Limited for £13.6 million. Orbital was 51% owned by BP Direct Mail Company Limited and 49% by Rydlings Limited, whose shareholders comprise the existing management team who will remain with the business.
Orbital comprises a portfolio of UK based logistics and marketing services businesses serving the travel, tourism, education, charity, publishing and healthcare sectors. The company was established in 1972 and it employs over 550 staff at 9 locations across the UK.
For the year to March 2012 Orbital reported an operating profit of £2.2m and gross assets of £13.5m.
Menzies are paying a total of £13.6 million with £7.7 million payable now and a further £5.9 million payable on 31 December 2014. Further consideration, up to a maximum of £6.3m may be payable only if exceptionally high levels of profit performance were to be achieved by December 2014.
Iain Napier, Chairman of John Menzies plc, said, “I am delighted that Menzies Distribution has acquired Orbital. This acquisition allows us to expand our printed media distribution footprint whilst also taking a large stride into adjacent growth areas. The team are now focussed on integrating these new businesses and driving through the significant synergies that have been identified. Orbital opens up new opportunities for us. The combined network will bring new reach to our logistical capabilities and allow us to expand some of Orbital’s services into new areas.”
UK, Edinburgh, Scotland & Asford, Kent