23 June 2021
Strategic refinancing continues Group’s development
Menzies Distribution is delighted to announce that it has secured a new £14m term loan with Royal Bank of Scotland. The new loan, together with existing cash funds, has enabled Menzies to refinance its recent short-term debt used to fund the acquisition of Bibby Distribution in December 2020. The new funding will also provide additional funding to support the future growth of the business.
The refinancing of company debt represents the fifth announcement of strategic importance made by Menzies in six months and will support the Group’s significant momentum. In December 2020, Menzies sealed a transformational deal combining two of the UK’s major logistics businesses. It acquired Bibby Distribution, now Menzies Distribution Solutions, unlocking geographic potential for Menzies while adding 38 new operating sites and a large, young fleet to the well-established Menzies platform. In January 2021, former Asda CEO, Andy Clarke, was appointed as Non-Executive Chairman. In May 2021, former Booker CEO, Charles Wilson, joined as a Non-Executive Director and new significant investor. Earlier this month, Menzies acquired JBT Distribution, a leading independent logistics and supply chain services business with strong representation in Scotland.
In September 2018 Endless LLP, the private equity investor, acquired Menzies Distribution as part of the business’s separation from John Menzies PLC. The newly independent company outlined at that time how it would develop the business through widening its service offering and geographical coverage.
Commenting on the refinancing, Paul McCourt, Chief Financial Officer of Menzies Distribution, said:
“This strategic refinancing is an important step in creating a strong and cost-effective capital structure, ready to support the exciting growth and investment opportunities across all our businesses. It will further strengthen our balance sheet and significantly increase our flexibility in pursuing organic growth and selective bolt-on acquisitions which align with our strategy.
“I would like to sincerely thank and acknowledge the highly supportive team at Royal Bank of Scotland, which has been a key strategic partner for Menzies alongside Endless since September 2018.”
David Amos, Royal Bank of Scotland Head of UK Financing Solutions (North & Scotland), said:
“The Royal Bank of Scotland is delighted to have extended our support for Menzies Distribution. This is a high-quality business with a first-class management team, highly supportive shareholders, consistently strong financial performance and a clear strategy for continued growth and diversification. It is a pleasure to work with Paul McCourt and all the team at Menzies, and we look forward to continuing our partnership on future projects.”
Aidan Robson, Partner at Endless LLP, added:
“We are very pleased with the significant progress made by the business in the last 12 months. The business has delivered strong results as well as completing two strategic acquisitions. This refinancing is testament to management’s ongoing successful strategy and the confidence of a major external lender in the exciting prospects for Menzies.”