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Canada’s Rosenau Transport acquisition by Royal Mail GLS

By Chris Dawson October 8, 2021 - 10:00 am

Royal Mail have announced that their subsidiary, General Logistics Systems (GLS), has agreed to acquire Canadian logistics company Mid-Nite Sun Transportation Ltd (the ‘Acquisition’) one of the largest independent freight carriers in Western Canada that operates as ‘Rosenau Transport’.

The combination of the two businesses will 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. It also provides a link to GLS operations along the US West Coast, unlocking significant growth opportunities with new and existing customers as the Rosenau Transport network moves to the combined GLS freight and parcel model. There is also the opportunity for revenue synergies by selling freight and parcel services into/out of the Rosenau Transport network, including cross border services.

Canada is the world’s 9th largest economy with a combined parcel and freight market of approx. C$25 billion4, growing around 5% per annum4. GLS entered the Canadian market in August 2018 following the acquisition of Dicom. Today GLS Canada operates a network of 2 hubs and 27 depots, with around 1,400 employees. Since Dicom was acquired it has delivered revenue growth of around 8% p.a. with a mid-teens operating profit margin in FY2020-21.

“The addition of Rosenau Transport to GLS complements and enhances our Accelerate strategy. 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. I look forward to welcoming Ken and the Rosenau Transport team to GLS and capturing the significant opportunities ahead of us.”
– Martin Seidenberg, Chief Executive Officer, GLS

“As we link two regional carrier networks together, with direct service to most cities and towns in the country, we will produce one of the most integrated transportation systems in Canada. The extended geographical reach will provide our 30,000 clients with a new, national and international alternative for all of their shipping needs.”
– Rick Barnes, President, GLS Canada

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