The Northamptonshire based company will start operations for Pall-Ex on 8 October 2012, serving the CV postcodes, expanding into the NN postcode region in 2013.
"C BUTT is a key player in logistics, and its capacity means that it can cover a large area very effectively for the Pall-Ex network," explained managing director Adrian Russell.
"The company’s core values are similar to Pall-Ex’s own, and we believe that this will be the start of a very successful working relationship for both businesses."
David Weston, C BUTT’s pallet distribution manager, added: "The partnership with Pall-Ex will offer existing and new customers an end-to-end supply chain with a single logistics provider, avoiding double handling and inefficient operating methods.
"We will operate two pallet distribution hubs as part of our initial roll-out programme, including a part conversion of an existing facility at Sywell, Northamptonshire.
"The two sites will be serviced with vans and a rigid fleet, supported with a double deck trunking operation from Northampton to Lutterworth, then on to the central Pall-Ex hub at Ellistown, Leicestershire."
C BUTT’s operations director Karl Hodgkinson commented: "C BUTT is a developing company that continues to evolve and diversify in a challenging market place. Our current services excluded small volume deliveries and collections. Initial discussions with Pall-Ex supported short and long term opportunities for both organisations.
"We are extremely excited about the new venture with Pall-Ex and entering the pallet distribution market, at what we feel is the right time for the C BUTT group."