Brazilian media conglomerate buys 90% stake in Total Express
The logistics and distribution division of Brazil’s second largest media conglomerate, Grupo Abril, has acquired a 90% stake in Brazilian express delivery company Total Express. Grupo Abril’s DGB has already been expanding its operations, and earlier this month launched a new e-commerce shipping subsidiary, Entrega Facil, to go alongside its existing media distribution divisions.
The deal for Total Express leaves a 10% stake in the hands of co-founder Marcos Monteiro.
DGB said the acquisition would further consolidate its position in the market, to target the “high growth” in Brazil’s more than 4,000 online retail websites, which it said currently turnover around BRL15bn ($8bn USD) a year in sales.
Total Express has been operating for 18 years, but was liquidated in 2002 after struggling to compete with Brazil’s national postal service, the Post and Telegraph Company (ECT or Correios), before the Monteiro family managed to repurchase company assets to recover the company based on its recognised brand name.
Capacity
DGB said Total Express already relied on some of its infrastructure to carry out deliveries in more than 2,000 municipalities across Brazil, and that the newly-acquired company had a particular strength in the home delivery and e-commerce markets.
Total Express has 30,000 square metres of materials handling space in its network, servicing 800 municipalities.
Its acquisition is expected to see DGB’s delivery capacity increasing from 50,000 to 200,000 items per day in 2012, DGB said.
Fernando Mathias, director general at DGB, said following the acquisition, Entrega Facil and Total Express would soon seek out additional markets and service offerings.
He said adding Total Express operations would allow DGB to expand its network and make use of shorter routes to increase delivery frequency and speed in some areas, as well as improving visibility for shipments.
“Consolidating services, as is the case in e-commerce, actually represents a huge opportunity for Entrega Facil to venture into the express delivery market and other logistics projects,” he said.
Giancarlo Civita, vice chairman of the family holding company that owns Grupo Abril, Abrilpar, said: “This acquisition consolidates our commitment to this country, whether by publishing content, culture and entertainment, or by continuously searching for logistics and distribution solutions, reaching consumers in every region of the country.”
