Clipper Logistics has bought warehouse and distribution business Tesam Distribution for £11m.

The Peterborough-based firm operates from three sites in and around the city, with a combined coverage of more than 1.1 million ft². Founded in 1984, it currently employs around 250 people.

Clipper said Tesam Distribution's sites are "attractively located with highly competitive cost bases".

The operator intends to increase capacity at Tesam's HQ in Ivatt Way by adding mezzanine floors and new racking and handling space.

This, said Clipper, will help it fulfil its new operations, after more than a year of regularly winning new contracts in the retail distribution sector.

Tesam MD Stephen Smith will become a consultant to Clipper Logistics once the deal has completed, with all other management staff at the firm set to remain as full-time employees.

Clipper Logistics MD Steve Parkin said: "Tesam is a successful and robustly profitable and cash-generative business that we have known for some time.

"The acquisition, coupled with our planned investment in additional capacity, will enable us to offer existing and prospective customers of both Clipper and Tesam greater operational flexibility, and will provide further headroom for the delivery of our strong business pipeline."

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