Royal Mail’s subsidiary General Logistics Systems (GLS) is to acquire the logistics company Mid-Nite Sun Transportation, which operates as Rosenau Transport and is one of the largest independent freight carriers in Western Canada. The addition of Rosenau Transport is intended to further GLS’s sustainable growth, through strengthening the GLS international network and its position as a cross-border player.
The total consideration is C$360m (US$288m) on a debt and cash free basis. The combination of the two businesses will stretch GLS’s network across Canada, the world’s ninth largest economy with a combined parcel and freight market of approximately C$25bn (US$20bn). Alongside this, GLS also sees opportunity for revenue growth through selling freight and parcel services out of the Rosenau Transport network, such as cross-border services. The deal is expected to be competed by December 1, 2021.
Rick Barnes, president of GLS Canada, stated, “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. The extended geographical reach will provide our 30,000 clients with a new, national and international alternative for all of their shipping needs.”