Suffolk jobs saved as Hemisphere Freight Services agrees to buy Magnus Group divisions
An independent logistics firm is set to buy the warehousing and freight forwarding elements of Magnus Group after it was announced that the latter intended to appoint administrators.
The acquisition (sum undisclosed) will see Hemisphere Freight Services (HFS) take on Magnus Group’s warehousing and forwarding divisions as well as all associated operational staff.
The agreement aims to minimise business disruption to Magnus’ clients as well as provide continuous employment to warehousing and forwarding team members.
As part of the arrangement, HFS will also take over c200,000 sq ft of warehousing space at Magnus Group’s Great Blakenham facility.
Magnus Group was founded in 1973 and has become 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.
Twenty-five jobs will be saved as a result of the agreement, which was one of the key priorities for Hemisphere’s board of directors ahead of the proposal to take over the business.
Andy Perrin, Hemisphere’s Managing Director, 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.
“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.”
The purchase of the two Magnus Group divisions comes at an exciting time for HFS as it 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 8000 bulk loaded pallets on floors and mezzanines.
Being based on East Anglia’s first carbon neutral logistics park enables Hemisphere and its clients to significantly reduce carbon in the supply chain.
Hemisphere’s team will utilise warehousing space in Great Blakenham for six months in the build up to the new Port One site, before transitioning the business to the new site immediately upon completion.
Hemisphere is an all-encompassing global logistics provider and has grown to be one of the largest independent UK providers of logistics solutions across Europe, Asia, North America, South America, Africa and Australasia.
Founded in 1989 in Colchester, it acquired its current 5.5-acre, 120,000 sq ft site in Ipswich, bringing its ocean, warehousing and road haulage operations under one roof. It was reported at the time as being the largest property acquisition in Ipswich for more than 10 years.
Hemisphere’s services include haulage, air freight, ocean freight, warehousing, customs clearance, export packing and project logistics. It also specialises in the handling and shipping of pharmaceuticals, automotive, dangerous goods, energy infrastructure, abnormal loads and antiques.