Bibby Distribution, the UK’s largest private family-owned logistics company, has acquired Hammond Logistics Group, in a move that will strengthen Bibby's position in the logistics marketplace, bringing turnover to £160 million, and extend its infrastructure to include 60 locations nationwide and a fleet in excess of 1,000 vehicles.
According to Theo de Pencier, managing director of Bibby Distribution, Hammond Logistics represents a perfect fit for Bibby, whose ambitious expansion strategy has seen the company double in size and increase in profitability over the last five years, with plans to double again within the next five years.
“Bibby is already in the top ten logistics companies in the UK, and the Hammond acquisition will close the gap, putting pressure on our nearest competitors,” he said. “Hammond represents the perfect fit for us in that it is a privately-owned company, with a culture that reflects our own – providing flexible, customer-centric solutions flowing from an agile, responsive management team able to make decisions rapidly.”
John Cutler, CEO of Hammond Logistics, which will become a wholly owned subsidiary of Bibby Distribution, stated that the acquisition will provide long term stability for Hammond, and points out that the synergy between the two companies will ensure 'business as usual' for Hammond customers. “Operationally, our customers will perceive little impact,” he said. “Hammond will continue to provide the same professional, reliable service, but, if anything, we will now be able to offer more flexibility than ever with an improved network of depots and an increased fleet of vehicles. The news has already been met with very positive response from our customers.”
Cutler added that Bibby Distribution has a policy of acquiring strong, successful, well-run companies, and as the two companies have already worked together in the past on joint projects, Bibby knows Hammond well.
Hammond’s network of depots neatly complements Bibby's own, with very few areas of cross over. Similarly, the merging customer bases are broadly complementary. Whilst Bibby is very strong in the food and drink sector, Hammond's expertise is in the automotive sector, which provides Bibby with an excellent platform for growth in the sector. Hammond's IKEA business will broaden Bibby's FMCG retail portfolio, whilst accounts in the paper and packaging and plastics and chemicals sectors will serve to diversify the overall Bibby customer base.
The acquisition of Hammond has been the largest Bibby has undertaken to date. According to de Pencier, operational synergies, as well as service and cost synergies, are already beginning to emerge.
