Baylis Distribution (Merged with Culina Logistics, 2007)

Note: This company is no longer trading as a separate enterprise.

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2007

November - Two medium-sized specialist food and drink logistics providers in the UK were merged by the owner of Mueller Dairy Group, a large German food company.

The companies concerned were Culina Logistics, which specialised in handling chilled food products, and Baylis Logistics which was largely involved in ambient activities. The merger of the businesses took effect from January 1, 2008, and the newly-merged company was known as Culina Logistics Limited. Theo Mueller took a 50% stake in Baylis Logistics in 2006 and the new group was principally owned by his holding company.

Culina was also owned by Theo Mueller and has played a role in distributing the highly successful range of yoghurt-based products of Mueller's principle investment, Mueller Dairy Group. However, Culina was not a part of Muller Dairy. Rather, Theo Mueller appeared to make a strategic investment in food logistics, possibly using the considerable volumes of Mueller Dairy to assist Culina.

The former CEO of Culina moved to Baylis Logistics in 2005 and the merger of the two companies and Mueller's previous investment seemed linked to this.

Culina was believed to have sales of around £80m (€120m) and Baylis Logistics of around £40m (€55m), with the two companies stating that the new company would have sales of £125m (€180m). Culina Logistics had operations in Italy and Germany. However, it was unknown whether these were particularly substantial or would play a role in the future of the group. In addition to Mueller Dairy Group, Culina had companies such as Danone, Unique and GUI as customers.

What appeared notable about this deal was that an investor with a business as dynamic as Theo Mueller was so keen to invest in food logistics. The UK food logistics sector was highly competitive, dominated by large and aggressive retailers. Of course it may have been simply an opportunistic move by Mueller, realising the increase in shareholder value that he can achieve through the merger.

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Baylis Distribution is a South West England based transport operator that specialises in the UK FMCG sector.  The company operates a network of some 10 depots and utilises in excess of 180 vehicles for its shared user distribution services.