UCL sells logistics group
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• United Carriers has sold its Z41m-turnover logistics division to Japanese shipping giant NYK to ease the group's debts.
The deal is believed to represent the first major incursion by a Japanese company into the UK distribution sector.
NYK (Nippon Yusen Kaisha) has acquired UCI Logistics, comprising four well-established distribution firms — Robsons Distribution Services, Hudson Shephard Transport, Sertranex SARL and Thompson Jewitt International.
The move follows recent predictions from City analyst Coopers & Lybrand Deloitte that UK distribution companies should be prepared for a "major threat" from Japanese rivals (CM 14-20 March).
Allan Binks, UCG's executive
chairman, will have a foot in both camps, as he will become chairman and chief executive of UCI Logistics, the name retained by NYK's, while keeping his position with UCG.
Last month UGC sold Scorpio, its loss-making garment subsidiary, to Tibbett & Britten (CM 6-12 June). But Binks says there will be no more disposals and UCG will now concentrate on its core businesses of parcels and shipping.
The sum paid by NYK will wipe out the group's debts and put it on "a sound financial footing", says Binks, Debts were built up in the form of loans used to finance UCG's management buyout from Bunzl in 1989.
NYK's four acqui
sitions employ 1,000 staff and have25 depots, including 150,000m2 of warehousing, and a fleet of 360 vehicles and 800 trailers. Their combined turnover in 1990 was £41m — 30% of UCG's sales.
Binks says UCG's reasons for selling UCI Logistics were strategic and financial.
NYK intends to use its UK operation to develop new services between the UK and the Continent through its shipping activities, but denies any plans for further acquisitions. NYK will grow "organically" through UCI, says Binks, who has been with UCG since 1987. He joined after the group was acquired by Bunzl and was instrumental in the 1989 management buyout. El Derbyshire haulier FB Atkins recently formed an association with NYK to bid for haulage business from the new Toyota Plant (CM 2-8 May).