Royal Mail buys Spanish parcels firm

The Spanish subsidiary of Royal Mail’s European parcels business, General Logistics Systems (GLS), has bought Spanish express parcels delivery company, ASM Transporte Urgente (ASM) for €71m.

Royal Mail said the acquisition provides GLS Spain with significantly enhanced size and scale, allowing it to offer a comprehensive national and international service. GLS Spain largely operates in the export market, with international connections through the GLS network.

In the year to the end of December, ASM – Spain’s second-biggest express parcels network, with 16 hubs and branches and more than 1,500 daily distribution routes – generated revenue of around €78m.

Royal Mail said that given the potential synergies, the deal is expected to be economic profit accretive for GLS in 2018-19.

Rico Back, chief executive officer, GLS, said: "ASM is a great strategic fit for GLS. It gives GLS Spain a significantly increased footprint in both size and scale. The combination of ASM and GLS Spain means customers can benefit from a high-quality, express parcels service within Spain and also in the growing cross-border market.”

At 0927 BST, shares were up 2.9% to 523.50p.