A £33m-turnover logistics business headquartered in Bradford is to be acquired by a DB Schenker Logistics' plan to expand its land transport operations in the UK.

DB Schenker Logistics's parent, Schenker AG, is set to acquire a 75% stake in Redhead International early next year and create a new joint venture. A takeover of the remaining 25% of Redhead is expected to take place within four years.

DB Schenker Logistics and Redhead will be merged in a reverse integration and will trade as Redhead International under the current management team.

Ewald Kaiser, board member for land transport at Schenker AG, said: "This acquisition underscores our strategy to strengthen and grow our pan-European network. It improves our access to the UK market and the combined resources will facilitate our strategic growth aims."

The new land transport group will operate more than 300 vehicles from five regional depots.  Redhead is also a member of the national pallet network Palletforce with more than 100 depots throughout the UK.

Tony Suggitt, managing director of Redhead, said: "The new venture brings the best of both companies together and will further strengthen the infrastructure of our UK and European network."

The shareholders of Redhead are being advised by a team from Yorkshire law firm Gordons, led by James Fawcett and Duncan Firman, with corporate finance advice from Armstrong Watson, led by Phil Bailey.

source: InsiderMedia