Tag: North America

Canada Post offers business services thought SmartmovesTM product

When Canadians move, they are more likely than at other times to open their pocketbooks to redecorate, refurbish or simply buy a new vehicle—or all three says a recent survey conducted for Canada Post’s smartmovesTM service.

The purpose of the smartmovesTM program is to connect businesses with Canadian consumers who are moving. Businesses and movers can communicate via the Internet and a magazine mailed to new movers. Canada Post sells advertising in these channels to provide businesses with an opportunity to reach new movers while strictly maintaining their anonymity. New movers receive useful information and tips in the smartmovesTM magazine as well as great offers on products and services they may need when moving. Canada Post does not release mover data to businesses at any time.

Canada Post’s multichannel smartmovesTM program provides unrivalled access to one of the most lucrative and motivated segments of buyers in the country: people who are moving. In 2006, more than 1.1 million households and businesses notified Canada Post of a change of address. The smartmovesTM program provides a communication channel for businesses and organizations to connect with this audience using banner ads on the www.smartmoves.ca web portal, consumer directed data updates, page advertising in the smartmovesTM magazine, “A Guide to Your New Home”, or by providing outserts that are delivered with the smartmovesTM magazine.

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Deutsche Post reviving US air cargo ambition

Deutsche Post has quietly revived a plan to invest in the US air cargo industry which was dropped four years ago in the face of regulatory opposition.

The company last month acquired a 49 per cent stake in Miami-based Astar Air Cargo, which in turn launched an unsolicited bid for Ohio-based ABX Air. Both companies derive most of their business from long-term contracts with Deutsche Post subsidiary DHL.

The proposed deal follows years of wrangling over Deutsche Post’s role in the US air cargo business, which is subject to the same constraints over foreign ownership as passenger airlines.

DHL agreed to sell its 25 per cent stake in Astar – then known as DHL Airways – to a group of US investors in 2003 after rivals such as UPS and FedEx claimed it had broken the ownership laws.

DHL’s USD 1.05 billion purchase of Airborne Express was also subjected to similar scrutiny, and the air cargo company was spun off to shareholders and renamed ABX, while the German group kept the ground-based parcel business.

Astar, which is headed by former Northwest Airlines chief executive John Dasburg, also tried to acquire ABX in 2003, and the talks were revived last December before the Miami-based group last week made an unsolicited USD 7.75 a share proposal to acquire its rival, citing “unusual volume and pricing activity” in ABX stock.

ABX was asked to respond to a proposal which valued the company at USD 454 million. Its shares climbed 12 per cent in the wake of the announcement and were trading just above USD 8, fuelling speculation of a rival offer from management.

DHL said it expected no problems in securing regulatory backing for the two deals involving its suppliers.

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RSM EquiCo Capital Markets Leads Negotiations as WIT Postal Logistics Is Acquired by Sopris Partners

Sopris Partners has acquired WIT Postal Logistics, a privately held mail distribution outsourcing company. Transaction terms were not disclosed.

RSM EquiCo Capital Markets initiated the transaction, led the negotiations and acted as exclusive financial advisor to WIT Postal Logistics.

“Sopris Partners will play an active role in helping to manage and grow the company,” said Brian Boyle, managing director of RSM EquiCo Capital Markets and head of the firm’s Chicago office. “Sopris brings strategic sales and marketing experience to the company, while adding operational experience to WIT’s B2B service model. Sopris’ philosophy is to work with business owners that want to preserve their company’s culture, while also providing liquidity to shareholders or new capital for growth.”

About RSM EquiCo Capital Markets

RSM EquiCo Capital Markets LLC (www.rsmequico.com) is a global provider of investment banking services to private and public companies with annual revenues of up to USD 1 billion. The firm brings together companies, capital and creativity on a national and international scale to help clients achieve their personal and strategic objectives.

About WIT Postal Logistics

WIT Postal Logistics is a non-asset postal logistics company. Its products and services are targeted primarily for mailers, parcel shippers and fulfillment enterprises, as well as individual companies with special needs for processing, delivering and tracking volume mail or general commodity products.

About Sopris Partners

Sopris Partners is a private investment firm focused on small- to mid-sized companies. WIT Postal is the firm’s first investment, and Sopris Partners will play an active role in managing it.

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DHL subsidiary to bid for US cargo airline

Astar Air Cargo, a US cargo airline in which DHL Express, the express and logistics subsidiary of German postal service operator Deutsche Post, holds a minority stake, has launched a takeover bid on US rival ABX. Astar is offering USD 7.75 per share in ABX, which puts the value of the company at USD 455m; it is possible that the company may have to up its bid, however, as shares in ABX climbed to USD 8.07 following the announcement of the offer.

ABX was part of US transport company Airborne, which has since been taken over by DHL Express, until 2003; DHL is still virtually the airline’s only customer, representing 95 per cent of turnover. Over 95 per cent of the volume of freight transported by Astar is also for DHL. A spokesperson for Deutsche Post has welcomed the bid, saying that considerable improvements in efficiency are expected.

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Localized customer specific strategies provide competitive edge for retailers

For retailers, there’s nothing more important today than precisely understanding local markets. Trying to serve the average consumer is a quick ticket to commoditization and earnings pressure for retailers.

Sure, companies can still be profitable using the old retail model. But in today’s marketplace, the road to increased market share, higher profit margins and stronger customer loyalty begins with a localized, consumer-centric strategy.

For some retailers this means a fundamental transformation in the way they approach their business. To succeed, companies must make informed, data-driven decisions by positioning the customer in the center of their universe.

Take this example: two stores are virtually identical. Both are 30,000 square feet, do about USD 6 million in volume a year and have about 3,800 customers a week. The surrounding population for both has a median household income of USD 80,000 and median age of 40.

The customers for both stores probably view the same ads and experience the same merchandise and store presentations. Yet, both stores may be sub-optimizing their performance.

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