Royal Mail acquires Canadian logistics business


Royal Mail acquires Canadian logistics business

Canadian logistics business Rosenau Transport has been acquired by Royal Mail for £210.5m, as part of its international subsidiary General Logistics Systems’ (GLS) plan to become a major force in the delivery sector in North America. The deal will support GLS’ planned expansion, particularly in the west of Canada, and allow the company to unlock “significant growth opportunities”, it said.

Royal Mail has had a presence in Canada for around four years and operates two hubs there along with 27 depots. The deal to take Mid-Nite Sun Transportation,  operating as Rosenau Transport, will enable it to expand and create a link with GLS’s current operations on the west coast of the US. The transaction is expected to complete at 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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