Menzies Distribution has bought what is thought to be the UK's largest all-electric fleet, with its purchase of final mile delivery firm Gnewt Cargo.
London-based Gnewt Cargo runs a fleet of around 100 electric vehicles in the city, and Menzies said the acquisition will give the operator a "stronger, cleaner presence in the London market".
Menzies MD Greg Michael said: “As a holder of the Carbon Trust Standard since 2009, Menzies Distribution has long been focused on our environmental responsibilities.
"Acquiring Gnewt was an exciting opportunity for us to advance our sustainability agenda whilst growing our neutral consolidation offer to the parcel market.
“Everyone recognises that goods need to be moved in and around congested city centres. The Gnewt model shows it can be done successfully whilst minimising environmental impacts."
A spokesman for Menzies Distribution told Freight in the City that the Gnewt Cargo name would remain in place, as it was an important brand in the sustainable transport space.
Menzies' long-term goal is to build a neutral, UK-wide parcel consolidation service open to all parcel carriers.
It also strengthened its position in Ireland earlier this year, when it bought EM News Distribution for €3.6m.
Last month Menzies backed out of talks to be bought by DX Group, after the potential buyer predicted significant losses in its upcoming results.