Nightfreight has been acquired by DX Group in an undisclosed cash deal that creates a mail, courier and distribution business with a combined turnover of approximately £290m.
As part of the acquisition former City Link MD Stuart Godman will join the combined managerial board as chief operating officer.
His former Target Express and City Link colleague, DX chief executive Petar Cvetkovic, remains in his current role while Nightfreight chief executive Ian Smith becomes DX strategy director.
Cvetkovic says the acquisition was an “outstanding opportunity” for both parties: “The enlarged business is set to generate profitable growth and will be much better positioned to satisfy growing demand from our new and existing customers.
"Together, we can build a sustainable business to compete more effectively in the courier and network distribution market.”
DX and Nightfreight will continue to be run as separate entities, with coordinated sales and marketing activity. A group wide IT system will also be implemented with DX planning to provide up to £20m of capital investment for Nightfreight over the next “few years”.
“We are now capable of delivering everything from a letter to a complete bedroom suite with king size bed - including the assembly and installation - through our two-man “white glove” premium delivery service,” he says.
DX, which specialises in mail, courier and network logistic services, is backed by private equity house Arle Capital partners.
In the 12 months ending 30 June 2011 it posted a turnover of £164m,virtually flat compared to £164.9m in the previous 12 month period. Pre-tax profit before goodwill and amortisation was £16.2m, up from £8.1m in 2010.
Nightfreight told MT last year that it was on track to return to the black in 2011 after posting a pre-tax loss of £2.1m for the year ending 30 November 2010 on a turnover of £117.8m (£121.8m in 2009).
Smith told MT at the time that the firm expected to achieve a £2m pre-tax profit in November 2011 with turnover of approximately £123m.
