TNT to acquire leading Spanish domestic express distribution company TG+
TNT N.V. Global provider of mail, express and logistics services today announced that its Express Division will acquire TG+, a leading Spanish domestic distribution company, subject to regulatory approval.
The proposed acquisition of TG+ will expand and strengthen TNT’s domestic express business and fuel its international express business in Spain, a strategic market in Europe with high growth potential. At the same time, TG+ will further drive growth of TNT’s leading position in the premium express delivery market in Europe by providing better coverage in this key market.
TG+ is the third industrial parcel operator in Spain with revenues of around €120 million split between its own operations (€ 100 million) and dedicated agents. In total this network currently employs 2,600 people (962 TG+ directly employed) and operates 57 depots (22 TG+ directly owned) throughout the country which add up to 135,000 square meters, with more than 900 pick-up and deliveries drivers, and a fleet of 140 line haul trucks connecting the depot network. TG+’s main depots are equipped with state of the art automated sorting systems.
TG+ is the result of the merger between Transcamer and Gomez, which took place in 2003. TG+ is owned by 3i, a listed private equity and venture capital company, and various minority shareholders, since 2001.
Peter Bakker, CEO of TNT commented: “We are delighted about this opportunity as TG+ is a professional leader in domestic express distribution which will complement our activities in Spain extremely well. It will provide us with a solid foundation from which to accelerate the growth of our domestic and international businesses”.
“Their extensive and solid network infrastructure will allow us to offer our domestic and international customers an even broader portfolio of services than before. The strategic fit for both TG+ and TNT Express in joining forces is truly compelling”, added Gonzalo Chico, Managing Director of TNT Express Spain.
Francisco Castro, Executive Vice President of TG+, added: “This is extremely exciting for us. TNT has the most extensive air and road delivery network infrastructure in Europe, as well as an unmatched global coverage, and we will be able to take full advantage of this for our current domestic customers. We are extremely pleased about the possibility of joining a company with such a focus in quality and service excellence and committed in delivering more to its customers, employees, shareholders and society.”
TG+ has a strong presence in the pharmaceutical, cosmetics, fashion and electronic sectors, and reinforces TNT’s firm foothold in key sectors such as automotive, biomedical, high tech and industrial.
Upon completion, TNT Express in Spain will count more than 4,000 professionals and 70 depots to serve its 25,000 existing customers. This transaction will consolidate TNT’s second position in the market for international services and will move TNT up to the third position in the domestic industrial parcel market. The transaction is subject to regulatory approval and is expected to be closed early 2006.
