# Royal Mail adds Canada freight strength with $287 million Rosneau deal
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-08
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Royal Mail's GLS parcel service acquires Rosenau
Meta Description: Royal Mail's GLS parcel service to purchase Rosenau Transport for C$360 million to strengthen freight carrier services in Canada.
URL: https://financedigest.com/royal-mail-adds-canada-freight-strength-with-287-million-rosneau-dealhtml

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(Reuters) -Britain’s Royal Mail said on Friday its GLS parcel service would buy Rosenau Transport for C$360 million ($286.8 million) as the postal company looks to bolster its freight carrier services in Canada.

GLS, which entered Canada three years ago by acquiring parcel delivery firm Dicom, will finance the deal using existing cash and loans, Royal Mail said.

The purchase will give GLS a network “stretching across the country” and add to its earnings and cash flow for the year ending March 2022, Royal Mail said.

Rosenau Transport’s model is similar to our existing Canadian [business and provides an excellent fit,” GLS Chief Executive Officer](https://www.financedigest.com/tips-for-choosing-the-right-chief-finance-officer-for-your-business.html "Tips for Choosing the Right Chief Finance Officer for Your Business") Martin Seidenberg said in a statement.

Rosenau Transport generated revenue of C$175.0 million and [core](https://www.financedigest.com/hellofresh-sees-2023-core-profit-of-460-540-million-euros.html "HelloFresh sees 2023 core profit of 460-540 million euros") earnings of C$41.6 million in the 12 months ended Aug. 31, with a mid-teens percentage [operating profit](https://www.financedigest.com/ikea-stores-owner-ingkas-annual-operating-profit-rises-9.html "IKEA stores owner Ingka’s annual operating profit rises 9%") margin.

Royal Mail, one of the world’s oldest postal firms, gave an upbeat [profit forecast last month as it benefits from improving letter volumes and higher](https://www.financedigest.com/polish-e-commerce-firm-allegro-eyes-higher-q1-profit.html "Polish e-commerce firm Allegro eyes higher Q1 profit") UK parcel revenues as people shop online.

($1 = 1.2553 Canadian dollars)

(Reporting by Sachin Ravikumar in Bengaluru; Editing by Ramakrishnan M.)


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