Royal Mail announced 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), for €71m.
The acquisition provides GLS Spain with greater size and scale, enabling it to offer a wider national and international service. GLS Spain largely operates in the export market, with international connections through the GLS network. The acquisition of ASM is expected to strengthen its domestic offering.
ASM’s Spanish express parcels network has 16 hubs and branches and more than 1,500 daily distribution routes. Operating mainly in the B2C segment the ASM claims that it accounts for around 10% of Spain’s domestic parcels market, delivering 25m parcels last year.
The total consideration for the purchase is around €71m. ASM generated revenue of approximately €78m in the year ended December 31, 2015. The transaction is expected to be accretive to earnings for GLS in 2018-19.
Rico Back, Chief Executive Officer of 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”.
Source: Royal Mail
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