Autumn 2006

Lane Group, one of Britain's leading two-man home delivery specialists, has unexpectedly been acquired for an undisclosed sum by Wincanton, one of the UK's biggest independent logistics groups.

Lane works for various high-profile home delivery customers including Homebase, Magnet, Electrolux and Bosch. Wincanton has not previously had a big presence in the sector, though it does have its own home delivery customers too, including B&Q and Comet.

Martin Taylor, Wincanton's managing director, retail, says the Lane acquisition propels the company into the forefront in this sector, where the opportunities "are significant," and adds: "The company's operation provides a good strategic fit."

Like most of the major logistics groups, Wincanton has watched the home delivery sector growing steadily, and has looked for ways to take a share of a market it says was worth £37.1 billion last year.

"This is a sector that is ripe for improvement," Taylor says, "and smaller companies find it difficult to respond."

Lane can trace its origins back many years to Peter Lane Transport. It has been guided through various logistics guises by its present managing director, Rebecca Jenkins, focusing increasingly on home delivery, and has a strong reputation for its ethical standards and an emphasis on quality.

Rebecca Jenkins told Fulfilment & e.logistics that Wincanton's offer came out of the blue, but represented a logical next step for the company. Its staff and nationwide depot network are expected to be retained, but its identity will be merged with Wincanton's over the next six months. Jenkins herself will oversee the integration process, then assume a group-wide role as business development director at Wincanton.

She adds that Lane's sophisticated in-house IT system, developed specifically for home delivery operations, is to be maintained and expanded by Wincanton. "This was one of the particular attractions for them," she told us.

* Shortly after announcing the Lane acquisition, Wincanton revealed that it had also acquired the 200-vehicle RDL Holdings, which specialises in distribution within the building products and construction markets. In this case the price was £22 million.