Connect Group acquires Tuffnells Parcel Express Tuffnells operates a fleet of more than 930 vehicles from 34 depots, providing 10m deliveries a year to 4,200 customers across a range of industries. The group reported revenues of £138.5m and adjusted earnings of £16m for the year to the end of August. Connect Group, the largest newspaper and magazine distributor in the UK, is trying to diversify its business in the face of declining print market. Connect is paying an initial payment of £113.4m and a further £15.3m subject to performance conditions over the next three years. Connect said that it would finance the deal with a £52m rights issue and recently extended £50m debt facilities. We are delighted to be announcing the acquisition of Tuffnells, which we believe offers significant strategic and commercial opportunities for the enlarged group. The addition of Tuffnells will see us broaden our reach into an area of specialist distribution which complements our core skills and competences of time sensitive distribution with high levels of service and efficiency," Mark Cashmore, group chief executive of Connect, said. "The transaction is expected to be significantly earnings enhancing for our shareholders and accelerates our clearly articulated diversification strategy," Mr Cashmore said. The group remains focused on growing profits and generating free cash flow to support our progressive dividend policy.