Bibby Distribution's CEO, Iain Speak, has revealed the motives behind the acquisition of TM Logistics.
Talking exclusively to Roadtransport.com, Speak says: "We have maintained our strategy is growth, and we have been achieving that organically through winning new customers and acquiring companies which have a similar business ethos to us."
He adds: "TM Logistics was attractive to us because it is family-owned with a strong reputation, and like us, some 50% of its clients have been with the firm for over 10 years. It is a strong platform for growth."
The purchase is the third in year two of Bibby's plan to more than double turnover and profit by 2012.
Bibby Distribution has also taken ownership of TM Logistics' sister company, Derbyshire-based PLS; a plastic pallet recycling operation.
"PLS offers a complete package for managing plastic pallets, including cleaning and recycling. There are few competitors offering this service, and we see a great opportunity to both expand and develop opportunities for PLS within our existing customer infrastructure, as well as into new markets," comments Speak.
He confirms PLS is expected to remain as the trading name for the division.
Bibby Distribution also intends to retain TM Logistics' Palletline membership, covering postcodes in south Birmingham, Coventry and Worcestershire.
The acquisition adds £31m to the firm's annual revenue, on top of the£10m from the purchase of some of MRS Distribution's assets in August, and a 12% rise in sales from the acquisition of Taygroup in May. It is estimated the latest deal takes Bibby's turnover to somewhere in the region of £250m.
Speak adds: "This is unlikely to be our last purchase. It is the latest one in a number we are actively pursuing, to grow our business."
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