Royal Mail's GLS buys US parcel delivery company Postal Express
By Michele Maatouk
Date: Thursday 06 Apr 2017
(ShareCast News) - Royal Mail subsidiary General Logistics Systems has acquired US overnight parcel delivery company, Postal Express for around $13.3m, or £10.6m, in a deal that is expected to be profit accretive in 2018-19.
This follows the purchase of Golden State Overnight Delivery Service, the regional carrier acquired by GLS in October 2016.
Postal Express is a regional overnight carrier operating in Washington, Oregon, and Idaho. It delivery mainly to business-to-business customers across a number of industries.
In the year to the end of December 2016, Postal Express generated revenue of around $42m and delivered some 8.7m parcels.
The business will be consolidated within GLS for reporting purposes but managed as a separate entity.
Chief executive Rico Back said: "The acquisition of Postal Express is in line with GLS' strategy of careful and focused geographic expansion."
At 0925 BST, the shares were down 0.3% to 409.90p.
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