Delivery firm DX has bought the distribution division of John Menzies, the airport services and logistics firm.
Cash of £60m will paid over by DX, with the £20m market cap firm also issuing shares representing 75 per cent of issued share capital to John Menzies shareholders and five per cent to the John Menzies pension scheme.
The firms expect the transaction to complete in the summer.
As part of the transaction around 17 per cent of John Menzies’ defined benefit pension scheme will move over to the enlarged group, a move that has been signed off by the scheme's trustees.
Read more: City activists smell the scent of success
Greg Michael and Paul McCourt, currently managing director and finance director respectively of Menzies Distribution, would become chief executive and chief financial officer of DX. Daljit Basi, currently finance director of DX, will become an executive director.
Rothschild acted as financial adviser to John Menzies with Zeus Capital acting for DX.