TNT announced today that its Express Division will acquire TG+, a leading Spanish domesticdistribution company, subject to regulatory approval.
The proposed acquisition of TG+ will expand and strengthen TNT’s domestic express business andfuel its international express business in Spain, a strategic market in Europe with high growthpotential. At the same time, TG+ will further drive growth of TNT’s leading position in the premiumexpress delivery market in Europe by providing better coverage in this key market.
TG+ is the third industrial parcel operator in Spain with revenues of around €120 million splitbetween its own operations (€ 100 million) and dedicated agents. In total this network currentlyemploys 2,600 people (962 TG+ directly employed) and operates 57 depots (22 TG+ directlyowned) throughout the country which add up to 135,000 square meters, with more than 900 pick-up anddeliveries drivers, and a fleet of 140 line haul trucks connecting the depot network. TG+’s maindepots are equipped with state of the art automated sorting systems.
TG+ is the result of the merger between Transcamer and Gomez, which took place in 2003. TG+ isowned by 3i, a listed private equity and venture capital company, and various minorityshareholders, since 2001.
Peter Bakker, CEO of TNT, commented: “We are delighted about this opportunity as TG+ is aprofessional leader in domestic express distribution which will complement our activities in Spainextremely well. It will provide us with a solid foundation from which to accelerate the growth ofour domestic and international businesses”.
“Their extensive and solid network infrastructure will allow us to offer our domestic andinternational customers an even broader portfolio of services than before. The strategic fit forboth TG+ and TNT Express in joining forces is truly compelling”, added Gonzalo Chico, ManagingDirector of TNT Express Spain.
Francisco Castro, Executive Vice President of TG+, added: “This is extremely exciting for us.TNT has the most extensive air and road delivery network infrastructure in Europe, as well as anunmatched global coverage, and we will be able to take full advantage of this for our currentdomestic customers. We are extremely pleased about the possibility of joining a company with such afocus in quality and service excellence and committed in delivering more to its customers,employees, shareholders and society.”
TG+ has a strong presence in the pharmaceutical, cosmetics, fashion and electronic sectors, andreinforces TNT’s firm foothold in key sectors such as automotive, biomedical, high tech andindustrial.
Upon completion, TNT Express in Spain will count more than 4,000 professionals and 70 depots toserve its 25,000 existing customers. This transaction will consolidate TNT’s second position in themarket for international services and will move TNT up to the third position in the domesticindustrial parcel market. The transaction is subject to regulatory approval and is expected to beclosed early 2006.
