Post Danmark to acquire print media distribution subcontractor

Post Danmark has put pen to paper on a deal to buy one of its mail preparation subcontractors in Denmark for an undisclosed amount. The company said today it has agreed to buy all the shares in Distribution Services A/S from current owners Zimmer Group A/S.

Distribution Services specialises in the packing and preparation of unaddressed mail, Post Danmark said, and has been operating as a subcontractor for the postal operator since 2003.

The company’s main activity has been finishing and preparing print media for time-sensitive distribution, with Post Danmark as its largest customer.

Back in May 2012, Zimmer Group restructured its activities to separate distribution services such that Post Danmark was left as Distribution Services’ sole customer.

Today, Post Danmark – part of Swedish-based group PostNord – said the acquisition was part of its strategy to adapt to market trends and create a more efficient and profitable business.

Henning Christensen, Post Danmark director, said: “We are acquiring a well-run company with which we have had a close cooperation for many years, and this will allow us to link these products closer to our other operations.”

“Natural and necessary”

The companies agreed not to disclose the purchase price for the deal, which should be effective as of 1 January, 2013, subject to the approval of competition authorities.

Post Danmark said following acquisition, the company will operate largely as it is now, and neither customers nor its 160 employees will be affected by the acquisition.

“The company will continue as before, and Post Danmark will only be appointing a new chief executive. The company must continue to operate with the same management and in the same location,” said Christensen.

Copenhagen-based Zimmer Group said transferring Distribution Services to Post Danmark was an inevitable development of the company’s partnership with the postal operator.

Jens E Zimmer, the company’s chief executive, said: “We see the transfer as a natural and necessary development in the functioning of cooperation. In Zimmer Holding Group we are pleased to continue its development in cooperation with Post Danmark in the coming years.”