DX Group buys half of Gnewt for £1.75m to expand green services

 
Joseph Millis
Gnewt uses pedalpowered delivery
INDEPENDENT postal company DX Group yesterday said it had acquired at 49.8 per cent stake in Gnewt Cargo, an environmentally friendly delivery services company.

The Buckinghamshire-headquartered DX will pay approximately £1.75m in cash upon completion of the deal.

The founders of London-based Gnewt will retain the remaining stake in the business.

Founded in 2009 with the aim of reducing pollution, especially from emissions and congestion, Gnewt operates a fleet of more than 100 electric zero-emission vehicles, including cargo-cycles and minivans.

It offers multi-drop “last mile” delivery services in central London.

Over the past year, the company has grown by 200 per cent to achieve annualised revenues of approx­imately £3.75m and earnings before interest, taxes, depreciation and amortisation of £300,000.

“We now look forward to working with the Gnewt team to expand their environmentally friendly ‘last mile’delivery services to other UK cities. We will be combining Gnewt’s technical expertise with DX’s funding support and core volumes to start-up Gnewt locations across the UK,” said DX chief executive Petar Cvetkovic.

“I am delighted that Matt and Sam, who both co-founded Gnewt, have chosen to partner with DX.

“We use Gnewt’s services ourselves and therefore know just how efficient and customer-focused they are – and, of course, how they help to reduce emissions and make city centres better places to be.”