DPD pledge to shake up Hungary’s CEP market after acquisition
La Poste’s DPD network has promised to “change the rules” in the Hungarian courier and express market as it expands through a new acquisition. The company, part of La Poste’s GeoPost Group, described its takeover of GTR Logistics Kft as “one of the most significant” moves it has made this year, anticipating a big increase in parcel volumes and market share in Hungary.
The 15-year-old company was sold by venture capital fund Central Fund Zrt as part of a restructuring process, and will provide DPD with a central warehouse and nine rural depots to join its existing presence of 18 depots in the central European country.
GeoPost chief executive for central and south-eastern Europe Marek Rozycki said: “This major inbound investment shows that the group has recognised the potential of the Hungarian market and believes in the future development of the business in Hungary.
“DPD will change the rules in the Hungarian market through international growth, innovative services and new product developments,” Rozycki added.
DPD said its operations in Hungary would comprise 500 employees and subcontractors, and more than 300 vehicles as its operations are integrated with the new acquisition.
Initially, GTR Logistics will continue to operate under its current brand, managed by DPD, with a change of name and image expected to come later.
Zoltán Varga, the Chairman of the Board at the Central Fund Zrt, said his firm had shaped up its logistics subsidiary prior to sale to the “prestigious multinational” DPD.
“This is largely due to that successful reorganisation, during which we stabilised and consolidated the financial status of GTR in only a few years, so its results in 2011 made it an attractive investment target.”
Csilla Hosszú, managing director of DPD Hungary said his company delivered 2.7m parcels in 2011, and that joint operations with GTR would see the firm strengthening its position in the Hungarian courier, express and parcels market.
“The considerably bigger fleet and the extensive national network will bring further improvement in the quality of our services and market share,” he said. “Looking at our future plans, the future delivery service of GTR is of great importance, too.”