Bibby Distribution has bought a significant part of the English operations of haulage company MRS Distribution from the receivers.
Under the terms of the deal, Bibby Distribution has taken over contracts with packaging manufacturer, Board 24 and industrial packaging firm Greif UK. It is expected to use up to 200 vehicular assets to service the contracts, which have been sourced by Bibby at very short notice.
Bibby is a privately owned company and the directors are not revealing how much was paid for the MRS assets but stress that it was a cash deal. It forms part of a planned acquisition programme by Bibby Distribution, which has already seen the company acquire Taygroup in April 2010.
Since taking over the contracts late on Friday 6 August, Bibby Distribution has already received praise from Richard McBride, Managing Director of Board 24. In an email to staff he said: “I am very pleased with the smooth transition of the operation. I would like to convey my thanks to the team at Bibby for their ability to make this happen at such short notice.”
Iain Speak, Chief Executive Officer of Bibby Distribution, added: “We are able to move quickly on acquisitions as long as they are complementary to existing operations and we believe that they can create value.”
“The market has been flat due to the recession and there are not many buyers out there. Some company owners that would like to sell have been waiting to see if things improve, but it is now clear to everyone that the prices achieved two years ago won’t be back.
“We carried out these transactions because it made sense for us and we are very active in looking for fundamentally sound businesses that we can acquire in order to enhance and accelerate our growth strategy.”
