A Lanarkshire-based logistics group is to increase its turnover to more than £40 million after it bought its struggling Fife rival.

A Lanarkshire-based logistics group is to increase its turnover to more than £40 million after it bought its struggling Fife rival.

Ramage Distribution acquired United Freight Distribution (UFD) from its administrator for an undisclosed sum.

The combined business will have a workforce of some 550 with a fleet of 230 vehicles and 400 trailers. Its customers include Kraft Foods, Glenmorangie, Tunnock’s and Whyte & Mackay.

The acquisition also adds depots in Aberdeen, Cambuslang, Warrington and Bristol to Ramage’s portfolio in Wigan and Biggleswade.

Under the terms of the acquisition agreement, UFD’s managing director Brian Kemp and head of operations Derek Page have joined Ramage’s board.

Ramage’s chairman and chief executive, Neil Cunningham, told reporters that the deal has made the company Scotland’s second biggest multi-depot operator.

“UFD’s pedigree and reputation for customer service is exceptional and, although it has had a difficult time financially in the very recent past as a consequence of market influences such as the cost of implementation of the working time directive, we are delighted to welcome the team into the Ramage group,” he added.

The company was sold by its administrator Deloitte, with the backing of Lloyds TSB Commercial Finance.

The bank provided an asset-based lending package that was arranged by client manager Rona Thomson with the support of Andrew Jones.

Thomson said the package included debtor protection on Ramage’s entire customer base. “With an extremely tight deadline, we ensured the package was structured, agreed, approved and put in place just 36 hours after receiving the business plan.

“The speed with which the team acted ensured the deal completed and that Ramage Distribution could begin benefiting from the geographical expansion and synergies brought about by the deal,” she added.