GLS acquires Dicom Canada

Royal Mail’s international arm GLS has announced that it has bought Dicom Canada for around £213 million. This gives Royal Mail a foothold in Canada.

Dicom Canada is mainly a B2B parcel services company that operates right across Canada, with a strong focus on the eastern Canadian provinces of Québec and Ontario. In 2017 the company reported revenues of C$233 million.

The new GLS acquisition offers ground-based parcel, freight and logistics services through its network of 28 depots. It also works with partner carriers across Canada, providing pan Canadian logistics services. It is to operate with the same management team and chief executive as it did before the acquisition.

Royal Mail chief executive Rico Back said of the new purchase, “This acquisition is in line with GLS’ strategy to grow through targeted and focused acquisitions to capture higher growth segments outside Europe. With its strong presence in Eastern Canada and primary focus on the business-to-business segment, Dicom Canada’s business model is similar to GLS’ as it provides a high quality delivery service, based on its focus on reliability and excellent customer satisfaction.”

GLS now accounts for 33 per cent of Royal Mails adjusted operating profit – up from 29 per cent in 2016-7.

The acquisition from Wind Point Partners, a Chicago-based private equity firm, does not include Dicom’s US business.