PR: GLS to acquire Rosenau Transport in Canada to complete coverage of Canadian market

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Press Release:

Royal Mail plc announces that its subsidiary, General Logistics Systems (GLS), has agreed to acquire Canadian logistics company Mid-Nite Sun Transportation Ltd, one of the largest independent freight carriers in Western Canada that operates as ‘Rosenau Transport’. The shareholders of Mid-Nite Sun Transportation Ltd are (via holding companies) members of the Rosenau family, the Rosenau Transport management team and their families.

The combination of the two businesses will create a network stretching across Canada which will enable GLS to cover the vast majority of the Canadian population and deliver further growth and synergies. It also provides a link to GLS operations along the US West Coast, unlocking significant growth opportunities with new and existing customers as the Rosenau Transport network moves to the combined GLS freight and parcel model. There is also the opportunity for revenue synergies by selling freight and parcel services into/out of the Rosenau Transport network, including cross border services.

The total consideration is C$360.0 million (approximately £210.5 million) on a debt and cash free basis. The acquisition will be funded through existing cash and borrowing facilities and is expected to be earnings and cash flow accretive to GLS and Royal Mail Group in the current financial year ended 31 March 2022.

The full release can be found here.