bpost in talks to buy US ecommerce shipper Landmark Global
Belgium’s national postal operator bpost is in talks to buy a majority stake in a US company that specialises in shipping ecommerce packages cross-border. California-based Landmark Global was founded in 2005 as a third-party parcel shipper arranging business-to-consumer shipments into Canada, working to a large degree for US ecommerce merchants.
Based on a carrier-neutral business model, and with its own proprietary software platform, Mercury, in seven years the company has grown to a workforce of 75, with a turnover believed to be about $50m a year.
Landmark currently has its headquarters in Santa Barbara, California, while its network includes facilities in both the US and Canada, in California, Washington, Utah, Michigan, New York, Ontario, British Columbia and Alberta.
Four of its facilities provide fulfillment services for merchants.
Over the past 12 months, Landmark has been expanding its business more into markets outside North America, including shipping to Australia. It has also formed a partnership with Texas-based Newgistics, providing US to Canada shipping services for Newgistics customers.
bpost confirmed to Post&Parcel today that it was in talks to buy a controlling share of the company, but a spokesman said there had been no agreement yet, and as a result could not say when the deal might be concluded.
The two companies are discussing the acquisition of a majority share of both Landmark Global Inc. itself, and also Landmark Trade Services, the subsidiary based in Ontario, Canada, which includes customs brokerage capabilities.
Landmark Global said due diligence is ongoing, with a binding contract yet to be signed and approved by the boards of Landmark Distribution LLC and bpost.
A spokesperson for Landmark told Post&Parcel that a letter had gone out to alert customers to the discussions between the two companies, but otherwise it was very much business as usual for Landmark’s business.
North American strength
bpost, the postal operator 50% (plus one controlling share) owned by the Belgian state, with the remaining shares held by CVC Capital Partners, already operates in the United States through its subsidiary Mail Services International, which is based close to Washington Dulles Airport and also helps customers ship items abroad.
Piet Van Speybroeck, the bpost spokesman, explained that his company’s interest in Landmark Global was on similar grounds to its acquisition of MSI three years ago.
He said that with MSI’s facilities based on the Eastern side of the US and Canada, Landmark Global would provide a stronger presence on the Western side of North America.
“The reasoning and logic is the same – to expand our business in North America and in ecommerce,” he said.
“Landmark is very well focussed on the western US and on business up to Canada. They might benefit from our network. We would have access to a booming business in the US and North America.”
The past 12 months has seen bpost pursuing a particular strategy that focuses on ecommerce and parcels, including through its new brand bpack, while becoming less interested in the digital mail side of the business.
Last month the company sold much of its digital document and e-invoicing subsidiary Certipost.
