Wednesday, August 12, 2020

Major Home Grown UK Pallet Distribution Groups Join Up

Member and Management Shared Ownership Model
Shipping News Feature

UK – Pallet distribution group Pall-Ex has acquired the Fortec Distribution Network via a new subsidiary company For-Ex Distribution Network Ltd. The two firms, which were both founded in Leicestershire in 1996, have a combined total of 168 network members, claiming the largest such contingent in the UK and the new company will trade as a separate pallet network under the For-Ex banner.

With this purchase Pall-Ex gains the group Fortec’s 210,000 square foot warehouse at Watling Park, Northamptonshire, giving the entire Pall-Ex Group more than 600,000 square feet of hub capacity. For its part Fortec gets access to the Pall-Ex international network of logistics agents and its membership will now take advantage of Pall-Ex’s unique shareholder model as well as sharing a number of 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.”

With the two organisations within one shared group the two are believed to form the largest collection of members in the UK. Pall-Ex, which shares ownership between members and its senior management team, alone claims to distribute 35,000 pallets a day throughout the UK and internationally. Adrian Bradley, Managing Director of Fortec, observed:

“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.”

Photo: (L to R) Barry Byers, Managing Director - UK Pall-Ex, Kevin Buchanan, Pall-Ex Group CEO, Adrian Bradley, Managing Director, Fortec Distribution.