DX and John Menzies agree merger terms
The boards of John Menzies and DX have negotiated revised terms for a transaction in which DX would acquire Menzies Distribution on a cash and debt free basis for £40 million in cash and the issue of new DX ordinary shares representing 65 per cent of DX' issued shared capital.
The boards believe that combining these two businesses will benefit customers of both DX and Menzies Distribution through the creation of an enlarged logistics and parcel carrier operating in the UK and Ireland. It is also expected that the deal would deliver annual cost savings of around £10 million.
The proposed deal is subject to the approval of both business' shareholders and, if approved, could complete during the summer.