GLS to Acquire Rosenau Transport for $288M
GLS has agreed to acquire Alberta, Canada-based trucking and logistics firm Rosenau Transport for $288 million in a deal that gives the Royal Mail subsidiary a nearly Canada-wide network for its freight and parcel business.
The acquisition, announced on Friday, represents a major expansion for GLS, which operates from Ontario and Quebec. By integrating Rosenau's western Canadian operation, GLS will be able to reach most of Canada's population and create a link with its operations on the U.S. West Coast.
Rosenau is one of the largest carriers in western Canada, with about 400 trucks and 24 facilities. According to GLS, it generated about $33 million in earnings before interest, taxes, depreciation, and amortization on $140 million in revenue in the 12 months ending Aug. 3.
"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," GLS CEO Martin Seidenberg said in a statement.
Rosenau will shift to handling a mix of freight and parcels under GLS' umbrella.
GLS' newly expanded network may offer tougher competition against Mullen Group, which has an LTL business with a similar geographic reach.
GLS entered the Canadian market in 2018 when it acquired Dicom. It offers parcel and freight services.
Netherlands-based GLS operates globally, with a significant presence on the U.S. West Coast from its acquisition of Golden State Overnight. GLS is a subsidiary of the U.K.'s postal carrier, Royal Mail.
The deal is expected to close on Dec. 1.
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