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DX, John Menzies agree revised terms for proposed merger

LBR Staff Writer Published 07 June 2017

Mail and parcel delivery firm DX Group has revised terms of the transaction to take over the distribution division of John Menzies.

As part of revised terms, DX agreed to acquire Menzies Distribution for around £40m.

In addition, the deal included the issue of new DX ordinary shares, representing 65% of its issued share capital as enlarged by the transaction.’

Menzies Distribution provides logistics services to the UK Parcel, Travel & Tourism, eCommerce and High Street Retail sectors.

With operations in the UK and Ireland, DX provides mail, courier and logistics services to its customers.

When the deal was first announced in March, DX agreed to acquire the business for £60m in cash, as well as agreed to offer new shares representing 80% of its issued share capital.

The combined company will provide better services for the customers through creating a logistics and parcel carrier of enhanced scale and capability operating through round clock logistics network across the UK and Ireland.

Subject to the approvals of both DX and John Menzies shareholders, the deal is expected to complete during the summer of this year.

DX chairman Bob Holt and John Menzies chairman Dermot Smurfit said: "We are pleased to have reached this agreement and believe that the revised terms of the proposed transaction represent an attractive opportunity for all stakeholders of both companies." 

Image: A DX lorry in London. Photo: courtesy of Philafrenzy.