Pall-Ex Group has announced the acquisition of the Fortec Distribution Network.
Purchased by a new subsidiary company For-Ex Distribution Network Ltd, the network will remain trading as Fortec Distribution. It will continue to operate as a separate pallet network within the UK but be part of the overall Pall-Ex Group of companies.
The two firms, which were both founded in Leicestershire in 1996, have a combined total of 168 network members, the largest in the UK, and are a welcome addition to Pall-Ex Group’s now 600 European membership.
Fortec’s 210,000 sqft warehouse at Watling Park, Northamptonshire, will give the entire Pall-Ex Group more than 600,000 sq ft of hub capacity as they continue to grow over 11% above the sector average (Q1 and Q2 2020).
This is the second purchase by Pall-Ex Group following a buyout by its UK senior management team and shareholder members in November 2019.
The Fortec membership will now take advantage of Pall-Ex’s unique shareholder model as well as sharing a number of quality resources, including Pall-Ex’s new Core Operational system, Nexus.
Kevin Buchanan, Group CEO of Pall-Ex Group, commented: “This is a significant step in Pall-Ex’s growth plans and a strategic move that will further strengthen our position in the UK.
“The addition to the group presents many benefits to our collective membership; Pall-Ex members are experiencing an increase in freight volume and need access to additional hub capacity, while Fortec members will have a say in the operation of their network under our unique shareholder model. Fortec customers will also benefit from being able to utilise Nexus and our International service, Pall-Ex Connect.
“While both firms will retain their brand identities, there are clear synergies that make this a natural partnership and we look forward to working together, winning together and becoming stronger together in this new era.”
Adrian Bradley, Managing Director of Fortec, said: “The acquisition places Fortec in a strong position and with Pall-Ex Group’s support and innovative new technology we can expand and enhance our network for the benefit of our members and our entire customer-base.
“We look forward to this new era, being part of the Pall-Ex family and providing members with the opportunity to invest in the network as shareholders.”