Royal Mail expands its Spanish operations

[TrueBlueTerrier]

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The postal company has bought Spain’s second largest express parcel network, ASM Transporte Urgente, for €71mln

Royal Mail PLC (LON:RMG) has expanded its presence on the continent after its Spanish subsidiary acquired express parcel delivery firm, ASM Transporte Urgente.

General Logistics Systems (GLS) will pay a total consideration of around €71mln for ASM, providing GLS with “significantly enhanced size and scale”.

GLS operates mainly in the export market currently, although it hopes its new acquisition will strengthen its domestic offering as well.

“ASM is a great strategic fit for GLS,” said chief executive Rico Back.

“The combination of ASM and GLS Spain means customers can benefit from a high-quality, express parcels service within Spain and also in the growing cross-border market.”

ASM is Spain’s second biggest express parcels network, with 16 hubs and branches and more than 1,500 daily distribution routes.

It accounts for around 10% of Spain’s domestic parcels market, delivering 25mln parcels in 2015 alone, generating revenues of around €78 million.

Royal Mail expects the transaction to be profit accretive for GLS in 2018-19.

Shares in Royal Mail were up 18.7p, or 4%, to 527.7p.

[TrueBlueTerrier]

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(ShareCast News) - The Spanish subsidiary of Royal Mail's European parcels business, General Logistics Systems (GLS), has bought Spanish express parcels delivery company, ASM Transporte Urgente (ASM) for €71m.

Royal Mail said the acquisition provides GLS Spain with significantly enhanced size and scale, allowing it to offer a comprehensive national and international service. GLS Spain largely operates in the export market, with international connections through the GLS network.

In the year to the end of December, ASM - Spain's second-biggest express parcels network, with 16 hubs and branches and more than 1,500 daily distribution routes - generated revenue of around €78m.

Royal Mail said that given the potential synergies, the deal is expected to be economic profit accretive for GLS in 2018-19.

Rico Back, chief executive officer, GLS, said: "ASM is a great strategic fit for GLS. It gives GLS Spain a significantly increased footprint in both size and scale. The combination of ASM and GLS Spain means customers can benefit from a high-quality, express parcels service within Spain and also in the growing cross-border market."

At 0927 BST, shares were up 2.9% to 523.50p.

[meercat]

Had never heard of GLS but apparently we own it, they are the 3rd largest parcel carrier in Europe and their revenue is 1.75BILLION Euros (2010/11).

Two questions, does their performance effect our share price and can we use their profits to invest in RM?


https://en.wikipedia.org/wiki/General_Logistics_Systems" onclick="window.open(this.href);return false;

[TrueBlueTerrier]

Had never heard of GLS but apparently we own it, they are the 3rd largest parcel carrier in Europe and their revenue is 1.75BILLION Euros (2010/11).

Two questions, does their performance effect our share price and can we use their profits to invest in RM?


https://en.wikipedia.org/wiki/General_Logistics_Systems" onclick="window.open(this.href);return false;

Yes - and Yes they already do.

If you check the Customers forum we answer some GLS queries.

[meercat]

Cheers, will do.