Bpost will gain a nationwide parcel shop network and an extensive chain of consumer retail outlets with today’s announced acquisition of Lagardère Travel Retail’s Belgian activities to diversify its delivery options.
The Belgian postal group will buy 100% of the capital of Lagardère Travel Retail businesses LS Distribution Benelux and AMP, which posted consolidated turnover of €440 million in 2014. The acquisition, for an undisclosed sum, is subject to the agreement of competition authorities.
The deal covers 220 retail outlets, including at train stations and airports, trading under well-known brands such as Press Shop and Relay and selling a wide variety of products and services. Lagardère Travel Retail also distributes newspapers and magazines to some 5,345 points of sale.
In addition, bpost will gain ownership of a network of some 735 parcel pick-up and delivery points in Belgium trading under the Kariboo! brand, as well as other value-added e-commerce solutions.
The number of parcels processed through the Kariboo! network, which launched in 2014, increased by 50% in 2015, driven by more commercial agreements. Both PostNL and DHL Parcel use this network for consumer deliveries in Belgium.
Koen Van Gerven, bpost’s CEO, said: “This acquisition will enable bpost to truly diversify its activities in a profitable growth business responding to the new customer needs to have always more proximity and convenience. It also enables us to face up to the intense competition on the Belgian parcels market.”
Lagardère Travel Retail explained that the sale of the Belgium distribution activities is part of the French group’s continuing exit from the press distribution and integrated retail business.
Explaining the deal’s rationale, bpost said the acquisition enables the group to improve its convenience and proximity services as part of its growth and diversification strategy. The company has identified convenience and proximity retail as a sector with attractive growth potential.
“The acquisition of this integrated retail and delivery network is expected to enable bpost to drive up the profitability of its activities by offering its customers greater proximity and convenience,” the company stated.
“bpost’s ambition is to invest in this growing business, open more points of sale, diversify its service offering to customers (commuters, passengers, online shoppers, readers) and continue to enlarge its pick-up point network to offer its customers a wider range of services and parcel delivery options.”
The postal group and the acquired entities will remain separate with the aim of developing the business, although synergies may be realised where that adds value for the group.
This means that the current bpost retail network of post offices and PostPoints and the Lagardère Travel Retail network, which includes Press Shop and Relay, will both retain their specific characteristics and product ranges. After agreement by the competition authorities, the parties will sign a franchise agreement for the distribution and operation of Lagardère Group brands (including Relay, Hubiz & Hello!) in Belgium.
