General Logistics Systems (GLS) is acquiring Canadian parcel service Dicom Vanada for 238 million euros. With the acquisition, the European company aims to tap into the Canadian parcel market.
Dicom Canada provides parcel, freight and logistics services via road transport. To provide pan-Canadian logistics services, the company has a network of 28 depots and works with partners across Canada. Dicom Canada's operations in the United States are not included in the acquisition.
Canada's growth market
The B2B parcel company, formerly owned by private equity firm Wind Point Partners, operates mainly in the Canadian provinces of Ontario and Quebec. These eastern provinces account for 57 per cent of Canada's GDP. GLS hopes to benefit from Dicom Canada's established market position in this region.
Rico Back, Chief Executive Officer of Royal Mail Group: "This acquisition is in line with GLS's strategy of opening up growth segments outside Europe through targeted acquisitions. With a strong presence in eastern Canada and a focus on the B2B segment, Dicom Canada's business model is similar to that of GLS."
Management of Dicom Canada remains unchanged
GLS is taking over the debt-free company for 360 million Canadian dollars (about 238 million euros), with Rick Barnes, President of Dicom Canada, and the current management team remaining in charge of Dicom Canada.
