Galt has signed up for the sole use of a 100,000sq ft warehouse in Warrington, Cheshire, at the headquarters of Kinaxia company Mark Thompson Transport.
Kinaxia is investing £500,000 to fit out the new building with lighting, racking, handling equipment, CCTV and a warehouse management system.
The contract with Galt, which has its headquarters in Cheadle, Greater Manchester, will create 20 jobs at the site.
The new warehouse was completed late last year at Mark Thompson Transport’s base on the Stretton Distribution Centre in Appleton.
Galt’s range of toys, games, puzzles, arts and crafts and equipment such as trampolines will be distributed from Warrington to UK stockists including Amazon, Argos, Hobbycraft, John Lewis, Sainsbury’s, The Entertainer and Waitrose, as well as independent toy and gift shops.
Items will also be picked and packed for export to Europe, Japan, China, the United Arab Emirates, South Korea, Australia and the United States.
John McDonnell, managing director of James Galt & Co, said: “The Warrington site is a wonderful location, being just 20 minutes from our offices and within easy reach of the motorway network due to its closeness to the M6.
“We explored numerous options when we were seeking a new warehouse and distribution centre, and this was the outstanding choice in terms of the quality of the people and the operation.”
The company, which was founded by James Galt in 1836 as a bookseller, employs 40 staff. It is part of the Jumbodiset Group.
Kinaxia comprises 13 freight and logistics businesses across the UK with over 1,600 staff and more than 800 vehicles.
The group, which has its headquarters in Macclesfield, Cheshire, has two million sq ft of warehouse facilities nationwide, offering contract packing, e-fulfilment, returns management and storage services.
It has seen significant and continued growth over recent years, with annual revenues now approaching £200m.
Vanessa Hope, sales and marketing director at Kinaxia, said: “We are delighted to welcome James Galt & Co to our warehouse facility in Warrington. It’s an iconic toy business with a fantastic client base.
“This is an extremely exciting contract for Kinaxia which will generate much-needed employment in the area.
“We are very pleased to be forging this link with such a well-known and respected brand, and look forward to working with the team over the coming years.”
