- 11 May 2016
- Transport / Logistics Services
DX Group has agreed to buy two Scottish parcel companies for £3.25 million in cash. It has exchanged contracts to acquire trade and assets of The Legal Post and First Post from First Scottish Group. The deal is expected to be completed by the end of May.
Legal Post is a company that offers a document exchange and postal service in Scotland, and helps customers to deliver their legal documentation effectively and on demand. Meanwhile First Post operates a downstream access mail service in Scotland which is claimed to be a cost effective alternative to Royal Mail’s First and Second Class services.
Between the two companies, according to DX Group, the operations generated combined sales of £5.2 million and an operating profit of £600,000 for the year ended 31 May 2015.
When the deal is completed, DX Group will combine First Post and Legal Post with its existing operations to serve the Group’s customers in Scotland.
DX CEO Petar Cvetkovic said: “We are pleased to announce that we have agreed terms to acquire Legal Post and First Post, both well-established operations that will enhance our customer offering.
“The businesses are wholly complementary to DX’s operations in Scotland and they will be stronger together for both sets of customers, increasing the number of members in a single Scottish exchange network and providing access for Legal Post’s members to DX’s existing members in the UK and Ireland.”
Acquisitions are often seen as quicker routes to accessing a new market or getting better coverage of that market. DX Group will be buying in infrastructure and customers as well as the physical assets of the two companies.