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Shell follows BP in Hays contract

4th September 1997
Page 8
Page 8, 4th September 1997 — Shell follows BP in Hays contract
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by Rob WiBock • Hays Distribution is on the verge of announcing its second £100m petrol forecourt contract in as many months, following negotiations with Shell UK to supply its 850 Select shops.

The deal will create 400 new jobs, including drivers who will work out of a national distribution centre in Northampton and five regional distribution centres. Last month's agreement with BP created 500 jobs (CM 14-20 August).

Under the Shell deal a new fleet of 100 Selectbranded trucks will deliver £1.9bn-worth of goods over the next five years.

_I Hays has also snapped up two European distribution businesses to make its continental logistics operation the largest of any UK group. Two-thirds of the company's logistics turnover will now come from overseas work.

Hays is buying FDS in France and van der Heijden in the Benelux countries from Australian group Mayne Nickless for £72m.

Both acquisitions distribute food and consumer goods for leading European manufacturers. They complement Hays' existing French and Dutch chilled food operations, Hays Fril and Bijsterbosch, and are expected to boost Hays' profits by £5m in the first year.

Hays chairman Ronnie Frost promises more acquisitions, probably in the mail handling sector, but rules out another bid for its UK rival Christian Salvesen.


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