JOHN Menzies has bought a parcel delivery firm that operates the UK’s largest all-electric fleet weeks after scrapping a plan to offload its distribution business to DX Group.

The Edinburgh-based logistics group has acquired Gnewt Cargo for an undisclosed sum under a plan to reduce the firm’s reliance on the newspaper and magazine distribution trade.

DX Group had a near 49 per cent shareholding in Gnewt Cargo.

Gnewt provides last mile delivery services in central London for a client base that includes retailers, e-commerce firms and parcel carriers such as Hermes and TNT.

The company has around 100 vehicles. It made more than three million deliveries last year.

The deal will allow Menzies Distribution to broaden its parcel delivery offering while boosting its environmental credentials. It will offer Gnewt’s services to existing customers.

Menzies has bought three delivery firms based in Scotland in the last two years to help the distribution division diversify. The group has faced investor calls to separate the division from its aviation support business.

John Menzies pulled out of a proposed deal to merge the distribution operation with DX last month. A trading update from DX in July made the terms of the deal less appealing to Menzies.