Royal Mail’s GLS Unit To Buy Rosenau Transport In Canada For C$360 Mln
Royal Mail plc (RMG.L), a provider of postal and delivery services, announced Friday that its unit General Logistics Systems or GLS has agreed to acquire Canadian logistics company Mid-Nite Sun Transportation Ltd. The total consideration is C$360.0 million or around 210.5 million pounds on a debt and cash free basis.
Mid-Nite Sun is an independent freight carrier in Western Canada that operates as ‘Rosenau Transport’. The shareholders of Mid-Nite Sun are members of the Rosenau family, the Rosenau Transport management team and their families.
The acquisition is expected to be earnings and cash flow accretive to GLS and Royal Mail in the current financial year ending March 31, 2022. The acquisition is subject to customary closing conditions and regulatory approvals.
The parties intend to close the transaction on 1 December 2021 subject to customary closing conditions and regulatory approvals. Following the acquisition, Rosenau Transport will be fully consolidated within GLS for reporting purposes after the transaction closes.
It generated revenue of C$175.0 million and EBITDA of C$41.6 million in the 12 months ended August 31, 2021. It has 24 owned facilities throughout four provinces.
Royal Mail expects the combination of the two businesses to 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.
The acquisition will be funded through existing cash and borrowing facilities.
Source: Read Full Article