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Bibby Line takes to the road with sale of distribution arm

The family-owned conglomerate is weighing a sale of Bibby Distribution, Sky News understands.

Bibby Distribution
Image: Bibby Distribution has 1,500 staff and more than 450 haulage vehicles. Pic: BD
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The family-owned conglomerate behind the Costcutter convenience store network is exploring a sale of its giant distribution arm.

Sky News understands that Bibby Line Group has hired advisers to examine offers for its Bibby Distribution division, which employs around 1,500 people across Britain.

If it proceeds with a sale, it would mark another stage in the streamlining of Bibby Line Group, which encompasses operations in grocery retailing, shipping and financial services.

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An insider cautioned that it was not certain that a deal would proceed.

Bibby Distribution delivers 1.3 billion cans of drink each year, and last year its fleet travelled 90 million kilometres distributing goods across the UK.

The reasons behind its parent's decision to explore a sale were unclear on Monday, although one source said the group was keen to focus on its core activities.

The distribution business is one of the largest logistics operations in Britain, and counts major consumer goods manufacturers such as Mars among its customers.

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Liverpool-based Bibby Line Group is more than two centuries old, directly employing more than 4,500 people.

It is run by John Cresswell, a former ITV and Arqiva executive.

A spokesman for the group declined to comment.