Royal Mail PLC (LSE:RMG) is acquiring one of Canada’s largest independent freight carriers for £210.5mln.
Mid-Nite Sun Transportation, which operates as Rosenau Transport, will be integrated into Royal Mail’s General Logistics Systems (GLS) business.
The business generated C$175mln of revenues in the 12 months ended August 31 and underlying earnings (EBITDA) of C$41.6mln.
It has 24 owned facilities in four provinces worth C$197.3mln. Royal Mail’s GLS business, by contrast, has two hubs and 27 depots, with around 1,400 employees tapping into a freight market worth around C$25bn a year.
"The addition of Rosenau Transport to GLS complements and enhances our Accelerate strategy,” said Martin Seidenberg, chief executive of Royal Mail’s GLS operation.
“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.
“I look forward to welcoming Ken and the Rosenau Transport team to GLS and capturing the significant opportunities ahead of us."