InPost (INPST) M&A Announcement summary

Deal rationale and strategic fit

• Full ownership of Menzies' Express and Newstrade enables end-to-end control of UK logistics, supporting rapid growth, premium next-day B2C delivery, and expansion of the parcel locker network.

• The acquisition builds on a successful partnership, leveraging Menzies' nationwide coverage and operational backbone to accelerate market expansion and improve APM network utilization.

• Direct oversight of quality KPIs and investment projects will modernize logistics, enhance scalability, and support scaling of B2C operations.

• Integration of Menzies' network provides reach to every UK and Ireland postcode, strengthening market position and reliability.

• The deal positions the business to disrupt the UK delivery market, shifting from C2C/returns to a stronger B2C focus.

Financial terms and conditions

• Acquired the remaining 70% of Menzies (Express and Newstrade) for £60.4 million in cash.

• MDS division (warehousing and linehaul) was de-merged prior to the transaction; InPost retains a 30% stake in MDS as a non-core holding.

• Initial 30% stake in Menzies was acquired in July 2023 for £49.3 million.

• No significant impact on group leverage; net debt from the transaction is minimal and offset by cash.

• InPost expects full consolidation of Menzies in its financials during Q4 2024.

Synergies and expected cost savings

• Integration of Menzies' network enables operational efficiencies, higher on-time delivery (now at 99%), and improved financial performance.

• Utilization of existing newspaper delivery routes supports locker network expansion and operating leverage.

• Combined business offers a faster, more cost-effective, and sustainable delivery system benefiting merchants and consumers.

• Operational synergies have already enabled a 156% YoY increase in UK parcel volume in H1 2024 and improved quality KPIs.

• Enhanced integration with InPost’s 8,000+ APMs and 2,800 PUDO locations in the UK.