Seur Espana / GeoPost: a model partnership
Seur Espana’s recent alliance with GeoPost, the express delivery arm of La Poste, will allow the French company to gain a presence in the Spanish parcel delivery market. For Seur, GeoPost’s support should help it achieve its ambitious sales goals. The joint venture could be a useful model for other foreign players seeking to enter the Spanish market.
GeoPost, a division of La Poste, acquired a 12.5% stake in Seur Espana in June 2004, after the founder of the Spanish group Justo Yufera had decided to put 21% of the company up for sale.
Seur is the leading express delivery company in Spain, with an estimated 17.8% share of the market. The company had revenues of E499 million in 2003, a 9.7% increase on the previous year, and currently has 344 sales points in Spain and Portugal. Seur Espana dominates a market that has been traditionally characterized by a high concentration of domestic players.
Whereas in most European countries German giant Deutsche Post World Net is the second player in terms of market share following the local postal operator, in Spain the big transnational logistics players have struggled to seize a significant portion of the market. DHL has made inroads recently though by acquiring the remaining shares in Guipuzcoana EuroExpress.
Nevertheless, as strong as Seur is in its domestic market, the company’s major weakness has always been its lack of international presence. The fact that Seur is based on a franchise network impeded several joint ventures with foreign partners, and the company was not prepared to undertake major acquisitions either.
GeoPost’s decision to take a stake in Seur could bring a solution to the latter’s problem thanks to the French group’s financial strength and, above all, its extensive European network. Seur’s vice president, Ramon Mayo, told El Pais newspaper that the company would double its international turnover thanks to the alliance.
For GeoPost, the acquisition follows its business model of focusing on the European market and respecting minority shareholders and cultural specificities of acquired companies and joint ventures. This is primarily why Seur shareholders chose this option. GeoPost’s model has suited Seur so far and could well prove to be the one replicated by other international players seeking to enter the Spanish express delivery market.
