RR Donnelley boosts cross-border logistics with acquisition

US printing and co-mailing giant R. R. Donnelley & Sons Company has acquired the international mailing company Express Postal Options International (XPO), it announced today. The acquisition, for an undisclosed amount, expands the fast-growing logistics services of North America’s largest printing firm, it said.

XPO provides international outbound mailing services for customers in the pharmaceutical, ecommerce, financial services, IT, catalogue and direct mail sectors.

With its headquarters in Torrance, California, it manages mail delivery for millions of tailpieces and parcels each month to more than 150 countries.

The company is already being integrated with the logistics services of its new parent, rebranding under the RR Donnelley.

Logistics services currently accounts for around 6% of RR Donnelley’s $10.6bn annual revenue.

The company offers capabilities including co-mailing, co-binding and co-palletisation as well as third party logistics services for less-than-truckload, full truckload and intermodal shipment, using domestic and international air, expedited air and ocean routes.

“Important enhancement”

Thomas J. Quinlan III, RR Donnelley’s president and chief executive officer, said the acquisition of XPO meant an “important enhancement” to his firm’s integrated offering for customers’ international mailing needs.

“Our logistics offering has been experiencing strong organic growth,” he said.

“The addition of XPO’s respected capabilities continues to expand the range of capabilities that we can provide to our customers. Part of our offering focuses on third party logistics (3PL) so we are able to serve customers in a wide variety of industries. As a global company, we are very effective in meeting customers’ international needs and this represents an important enhancement to our integrated offering.”

RR Donnelley’s logistics services handled 6.6bn pounds (about 3m tonnes) of items in 2011, including 1.8bn co-mail and co-bind book items, 1.3bn co-palletisation pieces, 273,000 truckload shipments and 573,000 LTL shipments, according to its financial records.

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