Royal Mail expands in Canada with £210.5m takeover

The postal service’s international division, GLS, has bought Canadian firm Rosenau Transport in a deal that will link its Canada and US services.

Simon Neville
Friday 08 October 2021 07:33
Royal Mail has bought Canadian logistics business Rosenau Transport (John Giles/PA)
Royal Mail has bought Canadian logistics business Rosenau Transport (John Giles/PA)

Royal Mail’s international subsidiary General Logistics Systems (GLS) has bought Canadian logistics business Rosenau Transport for £210.5 million to become a major force in the north American delivery sector.

The deal will see GLS expand its presence across the country, particularly in the west of Canada and allow the company to unlock “significant growth opportunities”, it said.

Royal Mail has been in Canada since 2018 and operates two hubs with 27 depots.

A deal to buy Mid-Nite Sun Transportation, which operates as Rosenau Transport, will see it expand and create a new link with GLS’s current operations on the west coast of the US.

It will be funded with existing cash and borrowing and see GLS take on 24 facilities in four provinces, once completed by the end of the year.

GLS chief executive Martin Seidenberg said: “The addition of Rosenau Transport to GLS complements and enhances our accelerate strategy.

“With its strong presence in western Canada, high quality, entrepreneurial culture, as well as freight capabilities and parcel potential, Rosenau Transport’s model is similar to our existing Canadian business and provides an excellent fit.”

Rick Barnes, president of GLS Canada, said: “As we link two regional carrier networks together, with direct service to most cities and towns in the country, we will produce one of the most integrated transportation systems in Canada.”

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