ibby Distribution snaps up TM Logistics
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joanna.bourkerarbi.co.uk BIBBY DISTRIBUTION has purchased £31m-turnover haulier TM Logistics for an undisclosed sum, marking its third large-scale acquisition in seven months.
The deal comes on the back of earlier purchases this year of some of the contracts of collapsed MRS Distribution and the takeover of Taygroup (CM 6 May). It gives Bibby Distribution annual turnover of around /250m and makes it the largest, privately owned logistics company in the UK.
fain Speak, CEO of Bibby, tells CM: "TM Logistics was an attractive purchase because it has a similar business fit to us. It is family-owned with a strong reputation, and like us, some 50% of its clients have been with the firm for more than 10 years. It is a strong platform for growth.
TM Logistics' customer base includes 16 key contracts across the automotive, construction and FMCG sectors, including one with insulation giant SaintGobain Isover.
The deal includes TM Logistics' sister company, plastic pallet recycling operation PLS, enabling Bibby to enter a new marketplace with a returnable transit packaging business.
Speak says the PLS division is favoured by the manufacturing sector, and will be a unique selling point for Bibby. He expects it to retain the PLS trading name under the Bibby umbrella.
In addition, the firm will take over TM Logistics' Palletline mem bership, covering distribution for postcodes in south Birmingham, Coventry and Worcestershire.
Palletline MD Kevin Buchanan adds: "We are still involved in early stage meetings about the acquisition, but we see good prospects at having Bibby as a member, and opportunities for extending its coverage."
TM Logistics will gradually be merged into Bibby's operations, and will assume the latter's name.
As well as bolstering turnover, Bibby's fleet will expand by 120 tractor units and 220 trailers, taking the total to some 1,800 vehicles and trailers. Warehouse capacity will also increase to 2.5 million ft2.
Approximately 350 TM and PLS employees based at 16 UK sites will transfer to Bibby under TUPE regulations. There are no plans to shut any of TM Logistics' depots, Speak confirms He concludes: "This is unlikely to he our last purchase. It is the latest one in a number we are actively pursuing to grow our business."
TM Logistics' previous shareholders have opted not to stay with the business