21st Oct 2024 19:51
(Alliance News) - International Distribution Services PLC on Monday expanded its parcel delivery business with the acquisition of a stake in Greek operator, ACS.
IDS, which owns Royal Mail in the UK, said its European parcel delivery business General Logistics Systems BV has bought 20% of ACS Postal Services SMSA from Quest Holdings' for EUR74 million.
ACS is the largest parcel carrier in the domestic Greek parcels market and serves over 30,000 customers.
During the twelve-months ended June, ACS generated revenue of around EUR155 million and adjusted earnings before interest, tax, depreciation and amortisation of around EUR29 million.
ACS has been operating as the GLS network partner in Greece since 2004.
IDS said the investment in ACS is consistent with GLS' strategy to strengthen its parcel operations, including within the cross-border deferred segment.
In addition to the initial investment, GLS has also secured a call option to acquire the remaining 80% of the share capital of ACS within two years. GLS will have the right to appoint two directors to the company's board during the minority investment period.
IDS Chief Executive Martin Seidenberg said: "ACS represents a significant and rare opportunity to invest in a leading independent carrier in Europe, which fully supports GLS' strategy. We are committed to building on GLS' history of successful organic and inorganic growth in Europe and this investment will improve our service offering in the largest market within the EU which is not served by the GLS network today."
Shares in IDS closed 0.2% lower at 344.60 pence in London on Monday.
By Jeremy Cutler, Alliance News reporter
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