Estonian Post buys Lithuanian courier firm

Estonian Post – Eesti Post – has acquired one of the largest parcel and express companies in Lithuania, as part of its continuing effort to expand its parcels business in the Baltic region. Unipakas UAB has been operating since 2005, achieving a EUR 2m turnover and EUR 22,000 net profit last year, with Estonian Post describing the company as well-managed and rapidly growing.

Its acquisition will mean a faster and more convenient delivery for shipments in the Baltic republics, Estonian Post said.

Estonian Post supervisory board chairman Meelis Atonen said snapping up the company was part of an aggressive push by his company to grow its presence within markets surrounding Estonia, particularly with a view to the ecommerce delivery market.

“To be successful in competing with the logistics and postal companies operating in the global market and to ensure profitability, we also need to expand,” he said, adding: “Estonian Post’s home market is the Baltic region.”

“Single market”

Estonian Post is currently in the process of investing EUR 12m to develop its parcel network in Estonia, Latvia and Lithuania.

Unipakas itself recently expanded outside its home market into Latvia.

Aavo Kärmas, the chairman of Estonia Post’s executive board, said creating a Baltic-wide network creates larger volume benefits, helping mitigate pressures on prices, and is increasingly becoming expected by ecommerce clients.

“The need to create a single network across the region comes from our customers, who see the Baltic States as one single market,” he said. “In order to be successful in the Baltics, we had to find a partner who helps to move the trade flows across the Baltic States and the European direction.”

Kärmas said the Baltic region has a “great potential” for ecommerce growth, even compared to the rest of Europe.

“Our goal is to help the Baltic e-shops to expand their businesses into the neighbouring countries,” he said.