20 Jun 2016 09:02
News Release
20 June 2016
GLS acquires Spanish express parcels delivery company, ASM Transporte Urgente
Royal Mail plc (RMG.L) today announces that the Spanish subsidiary of its European parcels business, General Logistics Systems (GLS), has acquired the Spanish express parcels delivery company, ASM Transporte Urgente (ASM).
The acquisition provides GLS Spain with significantly enhanced size and scale, enabling it to offer a comprehensive national and international service. GLS Spain largely operates in the export market, with international connections through the GLS network. The acquisition of ASM will strengthen its domestic offering.
ASM is Spain's second biggest express parcels network, with 16 hubs and branches and more than 1,500 daily distribution routes. Operating mainly in the business-to-consumer segment, it accounts for around 10 per cent of Spain's domestic parcels market and delivered 25 million parcels last year.
The total consideration is around €71 million. ASM generated revenue of approximately €78 million in the year ended 31 December 2015. Given the potential synergies, the transaction is expected to be economic profit accretive1 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. I am excited to see us combine our strengths and pursue our aim of best-in-class customer service".
ENDS
1 - Post tax earnings minus (total amount invested x cost of capital)
Media Relations
Royal Mail plc
Beth Longcroft on 07435 768549 or Beth.Longcroft@royalmail.com
Harshna Brahmbhatt on 07435 957464 or harshna.brahmbhatt@royalmail.com
GLS
Anne Putz on +49 (0) 172 1781 105 or anne.putz@gls-germany.com
Investor Relations
Catherine Nash on 020 7449 8183 or investorrelations@royalmail.com
About Royal Mail
Royal Mail plc is the parent company of Royal Mail Group Limited, the leading provider of postal and delivery services in the UK and the UK's designated universal postal service provider. UK Parcels, International and Letters ("UKPIL") comprises the company's UK and international parcels and letters delivery businesses operating under the "Royal Mail" and "Parcelforce Worldwide" brands. Through the Royal Mail Core Network, the company delivers a one-price-goes-anywhere service on a range of parcels and letters products. Royal Mail has the capability to deliver to more than 29 million addresses in the UK, six days a week (excluding UK public holidays). Parcelforce Worldwide operates a separate UK network which collects and delivers express parcels. Royal Mail also owns General Logistics Systems (GLS) which operates one of the largest ground-based, deferred parcel delivery networks in Europe.
About GLS Group
GLS, General Logistics Systems B.V. (headquartered in Amsterdam), provides reliable, high-quality deferred parcel services for over 220,000 customers in Europe, complemented by logistics and express services. "Quality leader in European parcel logistics" is GLS' guiding principle, sustainability being one of the core values. Through wholly owned and partner companies, the Group provides network coverage of 41 European states and is globally connected via contractual agreements. 41 central transhipment points and more than 700 depots are at GLS' disposal. With its ground-based network GLS is one of the leading parcel service providers in Europe. Around 14,000 employees handled 431 million parcels [in 2015-16]. Every day around 20,000 vehicles are on route for GLS. In the financial year 2015-16 GLS achieved revenue of €2.2 billion.
About ASM Transporte Urgente
ASM (www.asmred.com/) was created in 1987 as a small courier and local distribution company. After 29 years of activity, the company specialises in B2B and B2C services, both in Spain and abroad. ASM has a network of 365 agencies covering Spain and Portugal that manage more than 1,500 daily distribution routes, and has an operational structure that offers a clear competitive advantage due to its flexibility, quality and seamless service. The company's team of 3,000 professionals provides a direct and close relationship with its customers. In 2011 ASM was awarded the ICIL prize for its logistics excellence, in 2012 it was awarded the e-Awards Logistics prize and it is currently the official courier for the Spanish national football team.