Royal Mail acquires Canadian parcel business Dicom for US$273m

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Royal Mail’s subsidiary General Logistics Systems (GLS) has acquired Canadian parcel delivery company Dicom Canada for £213m (US$273m).

Dicom Canada primarily provides business-to-business parcel services across Canada, with a major focus on the Eastern Canadian provinces of Ontario and Quebec. Canada is the world’s 10th largest economy, with Ontario and Quebec representing 57% of the country’s GDP.

Dicom Canada offers ground-based parcel, freight and logistics services. It operates a network of 28 depots and works with partner carriers across Canada to provide pan-Canadian logistics services. Dicom Canada has experienced good revenue and profit growth in recent years. The acquisition does not include Dicom’s US business.

Dicom Canada will continue to be led by president Rick Barnes with Dicom Canada’s existing management team.

Rico Back, CEO at Royal Mail Group, said, “This acquisition is in line with GLS’s strategy to grow through targeted and focused acquisitions to capture higher growth segments outside Europe.

“With its strong presence in Eastern Canada and primary focus on the business-to-business segment, Dicom Canada’s business model is similar to GLS’s as it provides a high-quality delivery service, based on its focus on reliability and excellent customer satisfaction.”

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Kirstie joined the team in early 2017 and brings writing, communications and client experience with her. Now an assistant editor, she produces content for our magazines and websites. Away from the office, you will find her blogging on her lifestyle website or searching the internet for photos of sausage dogs.

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