Rico has bought a majority shareholding in air freight distribution carrier Circle Express as part of a “strategic acquisition” plan.

Circle Express, which has been trading through a CVA since May 2012, had an annual turnover of £29m in 2014, and runs more than 300 vehicles across eight airport-based depots.

The company returned to profit in 2013 and reported a 44% increase in pre-tax profit to £194,000 in 2014 (2013: £134,000).

Despite this growth, MD Tom Ryan said that the deal will give Circle Express the “financial backing” it needs to “move forward and strengthen its position in the industry”.

Rico, which operates primarily as a same-day courier and are part of the TVL Group, said while the day-to-day running of Circle Express will remain the same, the acquisition will expand its own same-day service offering.

Rico Global chief executive Sam Sharma described the deal will as “another strategic acquisition for Rico which will continue in the future in order to strengthen Rico’s operational capability and service portfolio across all its different lines of business, both in the UK and internationally”.

Rico bought DHL Express’s same-day courier business in November 2013, and told Motortransport.co.uk that it was “hungry for more growth” a year later.