Supply chain specialist Hemisphere Freight Services (HFS) is set to purchase the warehousing and freight forwarding divisions of Magnus Group, after the Ipswich-based haulier announced its intention to call in the administrators earlier this month.
The acquisition will also see Hemisphere take on Magnus Group’s operational staff at both divisions. As part of the arrangement, HFS will also take over around 200,000sq ft of warehousing space at Magnus Group’s Great Blakenham facility.
Suffolk-based Magnus Group was founded in 1973 and is a well-known name in Suffolk, not only for its logistics services, but also for its support of local causes, including the sponsorship of Ipswich Town Football Club and Suffolk Cricket. It currently holds an international licence authorising a total of 87 HGVs and 105 trailers running out of three operating centres in the East of England traffic area.
Announcing the acquisition, HFS said 25 jobs will be saved as a result of the agreement, adding that this was a key priority for Hemisphere’s board of directors ahead of the proposal to take over the business. Magnus Group employed around 147 staff in total.
Andy Perrin, Hemisphere’s MD, said: “It’s always hard to see a fellow family-run business go into administration, especially after decades of successful trading and becoming so well-respected within the local community. Our sincere condolences go out to everyone affected at what must be an incredibly difficult time.
“This is a sad reflection of the current state of the industry and economic conditions, and our offer to acquire the warehousing and forwarding elements of the business was, above all else, an attempt to safeguard the employment and ensure the wellbeing of as many of Magnus Group’s team members as possible – particularly in the run-up to Christmas, when many households are feeling the strain.
“We are incredibly excited to be able to welcome the new team members to the Hemisphere family and to strengthen the exceptional service we’ve always offered our clients.”
The purchase of the two Magnus Group divisions comes as HFS prepares to open a new multi-million pound warehouse on the Suffolk Port One Logistics Park development.
The site is set for build and completion by Q1 2024, and will enable the business to provide 34,750 racked pallet locations, which stack nine levels high, and an additional 8,000 bulk loaded pallets on floors and mezzanines.
HFS added that being based on East Anglia’s first carbon neutral logistics park enables Hemisphere and its clients to significantly reduce carbon in the supply chain.
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Hemisphere director, Craig Perrin said that the acquisition comes at a pivotal moment in the business’ growth: “This deal creates the opportunity to add some fantastic people to our team, as well as add a number of new clients to our portfolio, enabling us to demonstrate our exceptional customer service and form new relationships which will hopefully last for many years to come,” he explained.
“We truly believe that Hemisphere will be a great fit for those new team members and for the client base, particularly with the exciting development of our upcoming Port One warehouse.
“With state-of-the-art facilities and a vast freight forwarding division, we’ll be able to offer our clients a total logistics solution, and we look forward to providing our full support to Magnus Group’s client base to provide the most seamless transition possible and an efficient continuation of supply chains and services.
“The priority for us is to minimise disruption on both sides and ensure that Magnus Group’s current client base is well informed and well taken care of throughout this process,” he added.
Hemisphere’s team will utilise warehousing space in Great Blakenham for six months in the build up to their new Port One site, before transitioning the business to the new site immediately upon completion.
Louis Perrin, Hemisphere director, added: “At our core we are a family business, which has grown into a major logistics provider, and our growing success is largely attributed to our amazingly dedicated team.
“With us welcoming 25 new employees across the warehousing and forwarding sectors, we see this as a significant enhancement to our abilities to service both our existing and new clients alike.”
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