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Red Star sold

Tuesday 05 January 1999 00:02 GMT
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RED STAR Parcels, the loss-making division of British Rail that was sold for pounds 1 three years ago, has been bought by Lynx Express.

The terms of the transaction were not revealed but the deal is likely to have made a small fortune for the management, led by John Holmes, who were part of a consortium that bought Red Star in March 1995. The other investors were BZW and TSB. Red Star was losing about pounds 10m a year when it was sold but is now understood to be breaking even. The deal that will make Lynx the UK's largest independent parcels group with 4,000 vehicles, 3,000 employees and annual sales of pounds 170m.

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