Macclesfield logistics firm acquires counterpart prior to administration
Tue, 26 Sep 2023 | BUSINESS SALE
Macclesfield-based logistics firm Kinaxia Logistics has expanded after acquiring the business and assets of a counterpart prior to it entering administration. Kinaxia has acquired Nelson Distribution, a logistics business based in Belper, Derbyshire, after the company’s parent firm KNP Logistics Group filed a notice of intention to appoint administrators.
KNP Logistics Group was formed in 2016 merger through the merger of Nelson Distribution and Knights of Old. The KNP group, which comprises Knights of Old, Nelson Distribution and Steve Porter Transport, filed for administration last week after reportedly finding itself close to bankruptcy. According to administrators FRP Advisory, Kinaxia’s acquisition of Nelson Distribution was completed prior to the group entering administration.
In its accounts for the year ending May 31 2022, Nelson Distribution reported turnover of £26.5 million, up from £23.2 million a year earlier, while operating profit dropped slightly to £990,227 from £1 million a year earlier. At the time, Nelson’s fixed assets were valued at £952,904 and current assets at £11.1 million, while net assets stood at close to £4.1 million.
The acquisition sees Kinaxia acquire Nelson Distribution’s fleet of 117 vehicles, along with its customer base and premises and all 170 staff, who will transfer to Kinaxia under TUPE arrangements. The acquisition adds to Kinaxia’s existing fleet of over 850 vehicles, 2.7m sq ft of warehouse facilities across the UK and 1,600-strong workforce.
Kinaxia transports goods for a wide variety of sectors, including retail, food and drink, manufacturing and leisure, providing services such as e-fulfilment, storage, distribution, contract packing and returns management. In its accounts for 2021, the firm reported revenue of £184.9 million and pre-tax profits of £3.2 million.
Kinaxia Chief Executive Simon Hobbs commented: "We are pleased to have reached agreement to acquire the trading and assets of Nelson Distribution. It's a good business and an excellent fit for Kinaxia. We share the same values, and Nelson Distribution is based in a good strategic location for our group.”
High levels of insolvency in the logistics sector are helping more well-capitalised businesses to expand geographically and grow their service offering through distressed M&A - Find out more in this in-depth analysis
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