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Nightfreight snapped up by DX Group

  • 15 March 2012
  • By Christopher Walton

Mail and courier firm DX Group has acquired Nightfrieght in an undisclosed cash deal.

At the same time City Link MD Stuart Godman will join the board as chief operating officer. His former City Link colleague, Petar Cvetkovic, remains in his current role as DX chief executive, while Nightfreight chief executive Ian Smith becomes DX strategy director.

Cvetkovic says the acquisition was an “outstanding opportunity” for both parties. The deal creates a group with a combined turnover of £290m.

“The enlarged business is set to generate profitable growth and will be better positioned to satisfy growing demand from our new and existing customers. Together, we can build a sustainable business to compete more effectively in the courier and network distribution market,” he says.

DX and Nightfreight will continue to be run as separate entities, co-ordinating just the sales and marketing activities. DX is planning to provide up to £20m of capital investment for Neightfreight over the next “few years”.

“We are now capable of delivering everything from a letter to a complete bedroom suite with king size bed – including the assembly and installation – through our two-man “white glove” premium delivery service,” he says.

DX, which specialises in mail, courier and network logistics services, is backed by private equity house Arle Capital partners. In the 12 months ending 30 June 2011 it posted a turnover of £164m (2010: £164.9m).

Pre-tax profit before goodwill and amortisation was £16.2m, up from £8.1m in 2010.

Nightfreight told CM.com last year that it was on track to return to the black in 2011 after posting a pre-tax loss of £2.1m for the year ending 30 November 2010 on a turnover of £117.8m (£121.8m in 2009). Smith said at the time that the firm expected to achieve a £2m pre-tax profit in November 2011 with turnover of approximately £123m.

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Article source: http://www.commercialmotor.com:80/latest-news/nightfreight-bought-by-dx-group