Royal Mail PLC GLS acquires Postal Express in the US (7312B)
06 April 2017 - 10:00AM
UK Regulatory
TIDMRMG
RNS Number : 7312B
Royal Mail PLC
06 April 2017
Royal Mail plc
6 April 2017
GLS ACQUIRES US OVERNIGHT PARCEL DELIVERY COMPANY, POSTAL
EXPRESS
Royal Mail plc (RMG.L) today announces that General Logistics
Systems (GLS) has acquired the US overnight parcel delivery
company, Postal Express.
Postal Express is a regional overnight carrier operating in the
states of Washington, Oregon, and Idaho. Postal Express offers
overnight parcel delivery, mainly to business-to-business
customers, across a number of industries. This acquisition follows
the purchase of Golden State Overnight Delivery Service Inc. (GSO),
the regional carrier acquired by GLS in October 2016.
The total consideration paid for 100% of the shares in Postal
Express is approximately $13.3 million (around GBP10.6 million(1)
). Postal Express generated revenue of approximately $42 million
and delivered around 8.7 million parcels in the year ended 31
December 2016. The transaction is expected to be economic profit
accretive(2) for GLS in 2018-19.
Postal Express will be consolidated within GLS for reporting
purposes but managed as a separate entity.
Rico Back, Chief Executive Officer, GLS Group, said: "The
acquisition of Postal Express is in line with GLS' strategy of
careful and focused geographic expansion."
Ends
Investor Relations
Catherine Nash
Phone: 020 7449 8183
Email: investorrelations@royalmail.com
Media Relations
Royal Mail plc
Andrew Moys
Phone: 078 4180 3321
Email: andrew.moys@royalmail.com
GLS
Anne Putz
Phone: +49 (0) 172 1781 105
Email: anne.putz@gls-germany.com
Notes:
1. GBP:USD rate of 1:1.25
2. Economic profit accretive: Post tax earnings minus (total amount invested x cost of capital)
About GLS Group
GLS, General Logistics Systems B.V. (headquartered in
Amsterdam), provides reliable, high-quality deferred parcel
services for over 220,000 customers, complemented by logistics and
express services. Through organic and inorganic expansion, the
Group has grown to provide network coverage of 41 European states
via wholly owned and partner companies, and it is globally
connected via contractual agreements. 41 central transhipment
points and more than 700 depots are at GLS' disposal. With its
ground-based network GLS is one of the leading parcel service
providers in Europe. In the financial year 2015-16 GLS achieved
revenue of EUR2.2 billion.
About Royal Mail
Royal Mail plc is the parent company of Royal Mail Group
Limited, the leading provider of postal and delivery services in
the UK and the UK's designated universal postal service provider.
UK Parcels, International and Letters (UKPIL) comprises the
company's UK and international parcels and letters delivery
businesses operating under the "Royal Mail" and "Parcelforce
Worldwide" brands. Through the Royal Mail Core Network, the company
delivers a one-price-goes-anywhere service on a range of parcels
and letters products. Royal Mail has the capability to deliver to
more than 29 million addresses in the UK, six days a week
(excluding UK public holidays). Parcelforce Worldwide operates a
separate UK network which collects and delivers express parcels.
Royal Mail also owns General Logistics Systems (GLS) which operates
one of the largest ground-based, deferred parcel delivery networks
in Europe.
About Postal Express
Founded in 1985, Postal Express is an overnight carrier in the
Pacific Northwest region of the United States. Postal Express
customers enjoy a high level of customer service, including later
pickup times and higher degrees of customisation, at competitive
prices. Postal Express operates a network of 15 hub facilities,
with around 400 employees.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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