Sheffield-based Tuffnells Parcels Express has been snapped in a deal that could be worth £130m.
Swindon-based Connect Group said it was a “significant strategic opportunity” and would pay an initial consideration of £113.4m. A further £15.3m will also be payable subject to the performance of the business over three years.
Tuffnells provides B2B services from 34 national depots and delivers more than 10m parcels a year. The company turned over £127.8m lat year, an 11.5 per cent increase on the year previous.
Lloyd Dunn, managing director of Tuffnells, said: “By combining our businesses we will immediately benefit from opportunities to share skills and create synergies. We are already planning for strong standalone growth and expect there will be significant further benefits as we combine with Connect Group.”
Connect funded the acquisition with a £55m rights issue and debt facilities.
Mark Cashmore, group chief executive of Connect, said: “The addition of Tuffnells will see us broaden our reach into an area of specialist distribution which complements our core skills.”