- 11 October 2021
- Transport / Logistics Services
Royal Mail’s international delivery arm GLS has agreed to buy Canadian logistics firm Rosenau Transport for CAD $360m (£211.7 million) as it builds its interest in the country.
GLS first interest the Canadian market in 2018 with the acquisition of parcel carriers Dicom, and the purchase of Rosenau will help the company reach the vast majority of Canada’s residents.
The pandemic has led to a boom in e-commerce, which has led to bigger volumes in parcels and freight. “Rosenau Transport’s model is similar to our existing Canadian business and provides an excellent fit,” GLS Chief Executive Martin Seidenberg said in a statement on Friday.
Internal Royal Mail estimates show that Canada’s parcel and freight market is currently worth CAD $25 billion (£14.7bn) a year and is growing at around 5% annually.
Rosenau Transport has done well in recent years and had revenues of CAD $175 million with profits of $41.6 million in the last financial year.
The deal is set to close by the end of the year, and will positively impact Royal Mail’s earnings and cash flow for the year ending March 2022. Cash and leverage will fund the acquisition.