GLS buys market leader ABX Belgium
GLS Group is taking over ABX Belgium Distribution NV/SA. This makes GLS number 1 on the Belgian B2B parcel market. Today, the Belgian railroad company, SNCB/NMBS – the mother company of ABX Belgium Distribution – and GLS signed the agreements.
GLS is taking over the parcel and general cargo business of ABX Belgium Distribution, which generates revenues of approximately 90 million euros per year (Financial year 2005). Parcel business accounts for about two-thirds of the revenues. More than 650 employees work for ABX Belgium at a total of nine locations (including a hub in Brussels), providing service for approximately 8,000 customers – to service them, 560 vehicles are in use.
National strength combined with EU competence
Together, GLS Belgium and ABX Belgium Distribution, who now have a share in the B2B parcel business of almost 35 per cent, are the indisputable market leaders – followed by DHL (estimate: 28 per cent market share) and De Post (estimate: 11 per cent market share).
While ABX Belgium Distribution mostly handles shipments in the Benelux region, with only a small percentage of exports, GLS is positioned as a parcel service provider that operates throughout Europe. “Today’s transaction means we will be able to combine GLS’ European competence with ABX Belgium Distribution’s regional strength”, explains Rico Back, CEO of GLS B.V., Amsterdam. “For GLS, attaining market leadership in Belgium means that the network in central Europe is being decisively strengthened. For ABX Belgium Distribution, the link to the GLS European network will result in new growth opportunities.”
Parcel and general cargo from one source
ABX Belgium Distribution has held its own on the market by providing high-quality service. At GLS, quality and dependability are also top priorities. “This transaction puts us in a position not only to offer our customers a number of products and services both on the regional and European level but also combined parcel and general cargo distribution”, says Back. “This is especially attractive in the Benelux countries, because customers here like to receive these services from one source.”
Stronger through combined efforts
The employees of both companies will also benefit from the transaction. Up to now, GLS focussed strongly on exports and ABX Belgium Distribution’s service was mainly concentrated in the Benelux region. Both companies complement each other – layoffs due to internal restructuring are not planned. All employees will be retained. Pending further notice, the name ABX Belgium Distribution will remain in force. “We need the employees – they are the key to our high-quality performance and service to our customers”, explains Back. “Together we will look for ways to further improve this performance in future.”
With reference to the parcel business, there are plans to implement GLS Group’s unified European IT system and to adjust the production system to meet GLS standards. In addition, the management of both companies is checking to see if it makes sense to separate delivery in the Parcel and General Cargo divisions. This would only be an option if this improves the efficiency of the processes.
“GLS is the European leader with reference to quality”, says Back. “Both employees and customers in Belgium will benefit from this in future.”
