French post office to pay Pounds 190m for British express parcels operation Parceline & Interlink

French post office La Poste will pay Pounds 190m (Dollars 275m) for
the British express parcel and document business of Mayne Nickless,
the Australian health and logistics group. The Parceline and Interlink brands, with combined revenues last year
of Pounds 213m (Dollars 308m) and earnings of Pounds 15m, have been
bought by GeoPost, a La Poste subsidiary. The deal, involving 36 Parceline and 108 Interlink is due to be
completed in December. Peter Smedley, group managing director and chief executive of Mayne
Nickless, said: ‘Europe is now viewed as a single market and that
has led to the emergence of a small number of express ‘superpowers’. ‘In this context, our business in the United Kingdom and Ireland
would have lacked the operational scale and presence going forward
to ensure continued growth opportunities.’ Colin Millbanks, head of
Mayne Nickless’ European business, will transfer across to La Poste,
along with all senior British management. Mr Millbanks said: ‘There is no rationalisation threat to our
people. There will be no job losses whatever among our 3,600 staff.’
He added: ‘This is the last remaining major deal in the United
Kingdom express market. The four postal authorities and United Parcel Service are now sorted
in Britain, unless they want to add even more scale. Mr Millbanks
said: ‘The Germans have British presence through Securicor, the
British have it through the Dutch have it through TNT, the French
now have it through Mayne Nickless and UPS are everywhere. ‘So, strategically, none of the big guys need to secure anything
more in Britain, and some of them would run up against monopoly
issues.’ Mr Millbanks, who has signed a three-year contract with
GeoPost, said the latest deal ‘closed the door’ for British
management buyouts wanting to sell. ‘I think the big issue is that there have been a lot of management
and venture capital money put into the British express industry over
last five years, mostly with a view to selling on,’ he continued. ‘And you have to wonder who is out there with the big bucks any
more. That is a very interesting aspect of what I see as the last
door closing and all the seats being full.’ Loomis Courier Service,
Mayne Nickless’ Canadian subsidiary that increased volumes by 6.7%
to ADollars 295.1m, is not affected by the British sale. Mr Millbanks said: ‘Loomis does not face the same threats as the
British business. ‘There is not the same consolidation taking place in Canada, and
Loomis is number two in the domestic market there. It is a strong
performer making good profits.’
Copyright 2000 Lloyds List.
Source: World Reporter (Trade Mark) – FT McCarthy.LLOYDS LIST, 03rd November 2000