Leeds-based Endless to acquire Menzies Distribution Limited

The total enterprise value for the acquisition will be £74.5 million.

Headquartered in Edinburgh, MDL operates one of the largest overnight logistics networks in the UK, serving customers in the press, travel and third-party logistics sectors.

In a statement, Endless said: “While its core business is in strategic partnering with publishers to provide a sustainable route to market for their product, two years ago the company began a successful diversification strategy harnessing its unique UK and Ireland network capabilities to work with national parcel carriers and to develop an innovative solution for retailers.

“Employing approximately 3,700 people across 54 sites, throughout the UK and the Republic of Ireland, the business distributes over 6.5 million newspapers and magazines each day.

“Endless’ acquisition of MDL will enable the business to build on its successful growth and diversification strategy, working in long-term partnership with publishers to secure a sustainable route to market for their product and further support building and harnessing MDL’s UK network to partner with national parcel carriers and become a provider of choice to the retail sector.”

The transaction requires the approval of the shareholders of John Menzies plc and approval by the Competition and Consumer Protection Commission in Ireland.

The statement added: “This deal further adds to Endless’ excellent track record of carving out businesses from corporate sellers and comes less than a week after Endless listed The Works on the London Stock Exchange in a £100 million flotation.”

Endless was founded by former Andersen and EY advisers Garry Wilson and Darren Forshaw in December 2005.

Endless has offices in London, Manchester and Leeds. It invests in mid-market businesses with an equity requirement in the range £10m to £80m.