InPost has acquired the remaining 70% of Menzies Distribution Limited for £60.4m, giving it total control over Menzies express and newstrade operations, in a move aimed at building its presence in the UK market.
However, Menzies Distribution Services (MDS) the company’s full load transport services and warehousing arm, is not the part of the transaction. InPost will retain a 30% stake in MDS but it will remain under the control of Endless LLP, which acquired MDS in 2018, and continue to be run by its existing management team.
InPost is a Polish-owned courier, parcel delivery and express mail service company, which has its headquarters in Krakow. It has on of the largest parcel locker network across the UK, with around 6,400 automated parcels machines (APMs) and around 1,450 pick up and drop off points (PUDOS).
Announcing the purchase InPost said Menzies newstrade division, which is responsible for delivery of newspapers and magazines, will continue to operate as before, pledging to deliver the ”highest quality service” to UK publishers and retailers.
It added that Menzies nationwide logistics capability will give InPost the ability to scale at speed in the UK to meet increasing consumer demand and serve the largest e-commerce market in Europe.
The deal also allows InPost to fully control its UK logistics process and investment plan, allowing it to compete more effectively in the UK market, and will see it launch a ”high quality” next day B2C parcel locker service.
InPost began its partnership with Menzies in 2023, acquiring a 30% stake in the company for £49.3m and signing a collaboration deal, which InPost said achieved ”significant milestones including setting up high-quality ecommerce parcel logistics.”
Under the collaboration InPost saw a 156% increase in UK parcel volumes in the first half of this year, with volumes rising to 41 million parcels, compared to 16 million in the same period in 2023.
InPost said the acquisition builds on its strong commercial growth in the UK which has seen it triple its revenue in the UK market over the last year, rising from from PLN 140m (£27.21m) in the first half of 2023 to PLN 412m (£80m) in the same period in 2024.
The company said the deal gives InPost full control over its UK logistics operations, allowing it to accelerate its plans to launch new services in the UK market, including a next day B2C parcel locker service.
InPost said the acquisition will also allow it to leverage rising UK consumer demand for parcel lockers services, deliver a fast, more a cost-effective and sustainable delivery system, fully own the investment process, upgrade logistics capabilities, improve quality KPIs, and deliver innovations such as the recently launched B2Cservice called ‘Collect’, which offers over 8,000 InPost Lockers
It added: ”Menzies operates across a unique national network reaching every postcode in the UK and Ireland. With an experienced management team and the capability to provide services 360 -plus days a year, the Menzies brand provides significant reach and reliability.”
Rafał Brzoska, InPost Group chief executive, said: “With this strategic acquisition, InPost fully insources logistics in the UK.
“With Menzies fully integrated, we are even better positioned to create an exceptional offering in terms of quality, price and convenience for both merchants and consumers.
“This acquisition ultimately creates a single integrated organization that can take advantage of the increasing consumer demand for locker deliveries in the UK and that will redefine how ecommerce delivery operates in this market.
”We would like to give a warm welcome to the whole Menzies team, including the newstrade division - an established and renowned business in an industry we are excited to enter. We are proud of what that part of Menzies has achieved so far, and we look forward to working as one group to grow all aspects of the business.”
Neil Kuschel, InPost UK’s CEO, added, “This transaction is a critical milestone in unlocking and accelerating the growth potential of InPostin the UK.
“As one company, we will be able to create a business designed to win in the UK and serve the B2C market at a faster rate as more consumers discover the benefits of delivery to our lockers.
“The acquisition helps bring together the strengths of both organisations and will build on the commercial progress made under the leadership and guidance of Greg Michael, Menzies Group CEO.”
