GeoPost invests in Bulgarian firm Speedy, with plan to sell it DPD Romania
Bulgarian courier firm Speedy has informed investors of plans to acquire GeoPost’s delivery businesses in Romania. The company listed on the Bulgarian stock exchange confirmed last week that it will acquire 100% of DPD Romania and 100% of Geopost Bulgaria, companies that operate in the Romanian and Bulgarian markets.
The firm is buying the stakes from La Poste’s GeoPost Group and the Turkish firm Yurtichi Cargo Servizi AS for BGN 30m (EUR 15.3m), with valuations based on eight times the pre-tax earnings.
The comes as GeoPost itself acquires a minority stake in Speedy — initially up to 25% of capital. The French firm has been a strategic investor since 2002, and has the option to increase its shareholding to a “significant majority” position.
The arrangement sees Speedy becoming a full member of the international DPD road network in Europe.
Speedy explained: “With the acquisition of the two companies Speedy will be able to focus on the consolidation of the two markets by providing integrated logistic services to its Bulgarian and Romanian clients. In addition Speedy will enjoy direct access to the ground network of DPD in Europe in its capacity as a full member.”
Speedy said it was raising funds for the acquisition of DPD Romania and Geopost Bulgaria through a long-term investment loan as well as the capital investment from GeoPost.
DPD Romania has enjoyed considerable growth since starting up in 2008, with turnover up 20% year-on-year in 2011 and up 26% in 2012. The company states that its growth has been the result of investment in services.
Turnover grew by 24% year-on-year in the first nine months of 2013, to RON 34.8m (EUR 7.8m) with profits up 16% on the same period in 2012.
The firm has about 500 employees and 72 warehouses including franchisees, delivering about 15,000 packages a day.
