Amtrak acquires bankrupt Nightspeed
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According to an Amtrak Express press release, Nightspeed has been experiencing financial difficulties in recent months and went into administration on Tuesday August 16.
Amtrak says it has been in discussion with Nightspeed as one of a number of acquisition targets and was able to move quickly to save the company and the jobs of over 900 staff.
Iain MacRitchie, Amtrak's Chairman, commented: ‘Given the strength of the Amtrak brand and market position, we have been working for over 12 months on ways in which to consolidate the express parcels sector to give us a network capable of competing with the multi-national players. With our knowledge of the business and the potential synergies, we have been tracking Nightspeed for some time. The deal has come earlier than expected but with the strength of the team we have, we were able to step in and help provide the solution to acquire all the assets and take on all the staff.’
Jonathan Smith, Amtrak's Chief Executive added: ‘Amtrak has had increasing success in the home delivery sector and we are very proud of the unique service we have created. It is now our intention to build on Nightspeed strengths in the secure overnight delivery market. We will be working closely with the management and staff of Nightspeed over the coming months and we have a detailed integration plan which will benefit our customers. The combined resources will produce financial savings and I believe the two businesses are complimentary and together will make a dynamic organisation.’
Ian Pickford, Managing Director of Nightspeed said: ‘Over the past 22 years Nightspeed has provided customers with great national and international services. There is no doubt we have a high quality business and workforce and I am delighted that another quality company like Amtrak has acquired the business. With increasing competition in the overnight sector, it was becoming clear that a smaller business like Nightspeed would not survive on its own but now it is part of a larger network we have a chance to flourish.’
Amtrak also announced the formation of a Group structure which MacRitchie will Chair and Smith becomes Group CEO. Philip Jones becomes Group Finance Director in addition to his role as Amtrak Finance Director. The Group will coordinate and manage the integration function of the 2 networks in addition to looking at further acquisition opportunities in a fragmented overnight express parcels sector.
