Logistics provider Menzies Distribution has acquired parcel delivery business Oban Express, in a move that could transform e-commerce in remote parts of Scotland.
Under the deal, the Oban-based firm, which transports around 450,000 packages a year, will become part of Menzies Distribution’s national network. Oban Express, which currently serves Western Scotland and the Hebrides, will increase the depth of Menzies Distribution’s reach across the area.
With the acquisition, Menzies Distribution gains a new portfolio of customers which will receive the same high standards of service they had come to expect from Oban Express, as well as an additional platform for its parcel delivery consolidation service that allows national distribution businesses to access isolated areas cost-effectively.
Forsyth Black, Managing Director, Menzies Distribution, said: “The acquisition of Oban Express brings even more expertise to the Menzies Distribution portfolio and deepens our service offer in Scotland. We have now strengthened the geographical reach of our specialist parcel consolidation service, which dramatically cuts the cost of delivery to isolated areas for national carriers.”
Black added: “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. This is a model we’ve used successfully for newspaper distribution across Scotland, and now we can do it for mail order and e-commerce too.”
Oban Express operates depots in Oban and Glasgow, supported by a fleet of 45 vehicles. The company’s directors will remain with the business and play a crucial role in integrating Oban Express within the wider Menzies Distribution network over the coming months.
The acquisition comes on the back of a variety of moves by Menzies Distribution to grow in e-commerce as a neutral consolidation partner for major parcel carriers. In June 2015 Menzies Distribution acquired AJG Parcels of Inverness - another strategic purchase for specialising in hard-to-reach areas.