Bibby Distribution has further demonstrated its growth aspirations today by acquiring TM Logistics in an agreement adding an additional £31 million of business to its annual turnover.
The deal strengthens Bibby Distribution's position in the logistics market and marks its third major acquisition of the year - and one of the largest in the industry in the last 12 months. It follows the takeover of Taygroup in April and a significant part of MRS Distribution in August. TM Logistics' customer base includes 16 key contracts spanning the automotive, construction and FMCG markets, a natural fit with Bibby's proven logistics expertise.
Iain Speak, Chief Executive Officer of Bibby Distribution, explains the reasons behind the acquisition: "TM Logistics is a highly capable and respected operator with an ethos similar to our own and a significant number of high quality contracts.
"We are committed to providing excellent service and driving continuous improvement across all of our contracts. Naturally, we'll be looking to build upon these new relationships and deliver the same long term value for which Bibby is so well regarded."
Worcestershire-based TM Logistics will gradually be merged into Bibby Distribution's UK operations, driving efficiencies and adding value to both existing and new customers. This will also see the business take on the Bibby Distribution name.
Speak adds: "Acquisitions are a key part of our growth strategy alongside the organic development of existing accounts and our strong track record for winning new business. It's an exciting time for the company as we continue to expand, and we welcome on board our new colleagues.
"Across the next few months we will be working hard as a team to add value to the business and to ensure we continue to deliver an excellent and competitive service to our customers."
The acquisition also sees Bibby Distribution take ownership of Derbyshire-based PLS, a sister company of TM Logistics. This enables Bibby to enter a new marketplace with a returnable transit packaging business boasting strong environmental credentials.
"We see a great opportunity ahead to both expand and develop opportunities for PLS within our existing customer infrastructure, as well as into new markets," he adds.
The scale of the TM Logistics acquisition means Bibby Distribution's fleet will grow by 120 tractor units and 220 trailers, increasing total fleet capacity to some 1,800 vehicular assets - operating from 80 different sites around the UK. The company will also benefit from high quality warehouse facilities in Worcester, Milton Keynes and Swadlincote, increasing total warehousing capacity to 2.5 million ft².
Approximately 350 TM Logistics and PLS employees based at 16 UK sites will transfer to Bibby Distribution under TUPE. The previous shareholders have opted not to stay with the business
Commenting on the possibility of further acquisitions, Speak concludes: "We remain active in looking for future opportunities that will complement our existing operations and support our growth strategy."