Menzies has agree to pay a further £6.3m if division delivers "exceptional" profit performance by end of 2014
Logistics firm John Menzies has agreed a £13.6 million deal to acquire marketing distribution business Orbital Marketing Services Group.
Kent-based Orbital is 51 per cent owned by BP Direct Mail Company Ltd with Rydlings Ltd holding a 49 per cent stake.
Rydlings shareholders are also Orbital's existing management team, who will remain with the business.
Orbital, which was set up in 1972 and now employs 550 people, has a portfolio of UK-based logistics and marketing services encompassing the tourism, publishing, healthcare, education and charity sectors.
Menzies Distribution, the Edinburgh-based group's media distribution arm which brokered the deal, said the acquisition would open up new opportunities in new areas for Menzies.
However, Menzies chairman Iain Napier added “significant synergies” have been identified in mapping out the integration of the businesses.
Menzies said the deal will expand its footprint in print media distribution.
Menzies has agreed a deal to acquire the entire share capital in Orbital for £13.6 million in two instalments to be paid by the end of 2014.
A further £6.3 million may also be paid, but only if the division delivers “exceptionally high levels of profit performance” by December 2014.