JOHN Menzies has bought the Oban Express parcel delivery business as part of its efforts to help its distribution business build a big presence in the e-commerce market.
The group’s distribution arm bought Oban Express from its family owners for an undisclosed sum in a move that will increase the division's reach in Western Scotland and the Hebrides.
The division's managing director, Forsyth Black, said: “Menzies Distribution is now perfectly placed to serve carriers working for large mail-order firms by consolidating their parcels into one cost-effective, final-mile delivery, making it easier for customers in Western Scotland and the Hebrides to order online and get their goods quickly at a reasonable cost.”
The acquisition of Oban Express comes five months after John Menzies entered the growing e-commerce parcel market by acquiring Inverness-based AJG Parcels.
Group chief executive Jeremy Stafford said the purchase of AJG would allow the firm to build on the footprint that its newspaper and magazine distribution arm had established, to act as a cost effective neutral delivery and collection agent in the more hard-to-reach territories.
The group said the deal would enable it to run the vans it uses to distribute newspapers in daylight hours extensively for the first time.
Mr Stafford wants to grow the distribution division into a second growth business alongside the aviation services arm.
On Tuesday John Menzies disappointed investors with a warning that operational issues at Gatwick Airport will chop £2million off this year’s expected profits.
Founded in 1983, Oban Express has depots in Oban and Glasgow and a fleet of 45 vehicles.
John Menzies bought the business from Lorraine Parrott, Walker Owens, Louise Somerville and their spouses.
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