Menzies “confident” on DX deal

Despite opposition from significant shareholders at DX Group, John Menzies has reported that it remains confident in its plans to acquire the company ‘during the summer’.

The announcement came as part of John Menzies trading statement on its January – April performance that it released ahead of its AGM (due to be today, 12th May).

The statement read: “Our proposed deal to combine Menzies Distribution with DX (Group) plc continues to move forward positively. We remain confident of a conclusion to the deal during the summer and will update shareholders at the appropriate time.”

Other than the proposed DX deal, John Menzies also stated that it had made a “positive start” to the year, continuing to make “good progress” against its strategic objectives.

The statement continued: “At Menzies Aviation, the underlying business is performing well with solid revenue growth in the period of 12% on a constant currency basis. Contract gain momentum has continued with notable wins across each region. In the UK, contracts have been secured with Cathay Pacific and Jet2 and in the Americas with Virgin America and Frontier. In addition our joint venture with Oman Air is due to start early in the second half of the year at nine airports across Oman.

“The acquisition of ASIG was completed on 1 February 2017 and trading is in line with our expectations. Integration plans are on track, the anticipated synergies are being realised and overall we are pleased with the business we have acquired. Customer reaction to the acquisition has been positive and the pipeline of opportunities remains strong. Our current focus is on the seamless integration of the existing business into Menzies systems and processes, which will provide a strong platform to build the enlarged business.

“Menzies Distribution is performing in line with expectations. Overall sales decline of 3.1%, against the same four month period last year, is broadly in line with our forecasts, although the rate of decline within the magazine market is sharper than expected.”  
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