A private equity-backed logistics company has announced it is merging with a German firm less than a day after it was revealed it made sales of more than £20 million for the first time last year.

Carousel Logistics, based in Sittingbourne, will join forces with LSi Logistiks in a deal which expands its reach into Spain, Poland, Germany and Switzerland.

Reinhard Klausner will remain as LSi’s managing director and will join the executive board at Carousel.

Both firms will keep their names and there will be no changes to either's operation teams.

The two businesses have worked together for more than seven years.

The merger creates links between the firms’ UK and European distribution networks ahead of Brexit.

Carousel chief executive Graham Martin said: “This announcement is the perfect coming together of two companies and one that is incredibly timely, given the recent changes to the European landscape.

“During our time working together, we have found that separately we’re great, but together we’re even better. So this merger is all about offering our clients even better solutions and more opportunities than ever before.”

“This announcement is the perfect coming together of two companies and one that is incredibly timely, given the recent changes to the European landscape..." - Graham Martin, Carousel Logistics

The latest accounts for Carousel, based in Eurolink business park, show it achieved record turnover last year and pushed pre-tax profits close to the £2 million mark with growth of 17%.

The company, which employs about 90 people, has grown by about 56% since private equity firm Livingbridge invested in the company in 2013.

Mr Klausner added: “Carousel and LSi are both experts in their markets, sharing not only clients, but also a DNA for delivering high quality, customer-driven logistics, without the need to compromise.

“We’ve worked with Graham and his team for many years and while this partnership is simply a formalisation of our existing relationship, together we offer a really exciting opportunity to our clients.”