Amtrak Express Parcels Ltd has announced that it has acquired the business and assets ofNightspeed Services Ltd for an undisclosed sum. Nightspeed has been experiencing financial
difficulties in recent months and went into administration earlier today. Amtrak had been indiscussion with Nightspeed as one of a number of acquisition targets and was able to move quicklyto bring certainty to the company and over 900 staff.As Iain MacRitchie Amtrak’s Chairman commented, “Given the strength of the Amtrak brand andmarket position, we have been working for over 12 months on ways in which to consolidate theexpress parcels sector to give us a network capable of competing with the multi-national players.With our knowledge of the business and the potential synergies, we have been tracking Nightspeedfor some time. The deal has come earlier than expected but with the strength of the team we have,we were able to step in and help provide the solution to acquire all the assets and take on all thestaff.”
As Jonathan Smith, Amtrak’s Chief Executive commented, “Amtrak has had increasing success in thehome delivery sector and we are very proud of the unique service we have created. It is now ourintention to build on Nightspeed strengths in the secure overnight delivery market. We will beworking closely with the management and staff of Nightspeed over the coming months and we have adetailed integration plan which will benefit our customers. The combined resources will producefinancial savings and I believe the two businesses are complimentary and together will make adynamic organisation.”
Ian Pickford, Managing Director of Nightspeed added, “Over the past 22 years Nightspeed hasprovided customers with great national and international services. There is no doubt we have a highquality business and workforce and I am delighted that another quality company like Amtrak hasacquired the business. With increasing competition in the overnight sector,it was becoming clearthat a smaller business like Nightspeed would not survive on its own but now it is part of a largernetwork we have a chance to flourish.” Amtrak also announced the formation of a Group structurewhich MacRitchie will Chair and Smith becomes Group CEO. Philip Jones becomes Group FinanceDirector in addition to his role as Amtrak Finance Director. The Group will coordinate and managethe integration function of the 2 networks in addition to looking at further acquisitionopportunities in a fragmented overnight express parcels sector.
