(Sharecast News) - Royal Mail said it had bought Canadian logistics company Rosneau Transport for CAD$360m (£210.5m).
Rosneau is one of the largest independent freight carriers in Western Canada, Royal Mail said on Friday, adding the deal was being done via its international General Logistics Systems arm (GLS).
The acquisition will be funded through existing cash and borrowing facilities and is expected to be earnings and cash flow accretive to GLS and Royal Mail Group in the current financial year ended 31 March 2022.
"The combination of the two businesses will create a network stretching across Canada which will enable GLS to cover the vast majority of the Canadian population and deliver further growth and synergies," Royal Mail said in a statement.
"It also provides a link to GLS operations along the US West Coast, unlocking significant growth opportunities with new and existing customers as the Rosenau Transport network moves to the combined GLS freight and parcel model."
The company added there was also scope for revenue synergies by selling freight and parcel services into/out of the Rosenau Transport network, including cross border services.
13 Oct 2022 07:50
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