Home Business NewsBusiness Royal Mail snaps up Canadian parcels company for £213m

Royal Mail snaps up Canadian parcels company for £213m

by LLB Reporter
3rd Sep 18 10:26 am

Royal Mail Plc’s international arm GLS has bought Canadian parcel delivery company Dicom Canada from Chicago-based Wind Point Partners for £213.36m.

“This acquisition is in line with GLS’ strategy to grow through targeted and focused acquisitions to capture higher growth segments outside Europe,” said Royal Mail boss Rico Back.

“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.”

The deal was funded through existing borrowing facilities and will be earnings and cash flow accretive in the financial year ending March 31, 2019, the company added.

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