DHL Express has completed its exit from the Canadian domestic market through the sale of itsdomestic operations to TransForce Inc.
TransForce and DHL Express (Canada) jointly announced yesterday the formal closing of theirpreviously announced agreement whereby TransForce has purchased the assets of DHL Express Canada’sdomestic business which will be operated in future through a newly established subsidiary, LoomisExpress. The transaction value, which has not been disclosed, has been put at about C$25 million byCanadian media.
With the closure of the transaction, Loomis Express and DHL Express Canada will beginoperating as two separate companies, providing a completely integrated domestic and internationalsuite of innovative and strongly competitive logistics and shipping services.
Under their 10-year strategic alliance, Loomis Express will focus on providing expandeddomestic operations in the Canadian package and courier sector, allowing DHL Express Canada toleverage its core strength and focus exclusively on the Canadian international shipping segment.
Loomis Express has annual revenues of about C$275 million (€196 million) and about 2,000staff. DHL Express’ existing domestic management team is remaining at Loomis Express to ensurecontinuity for all customers.
An integrated advertising campaign entitled “The Power of 2” continues across Canada tounderscore how DHL Express and Loomis Express will be working together to bring Canadian businessesa more powerful delivery service in Canada and the world.
“This transaction creates a strong competitive advantage, bringing together two leadingorganisations to deliver a more powerful service across Canada and the world. The deal solidifiesTransForce’s position as a leading Canadian provider of package and courier services.We have nowbeen working together for almost two months and customer reaction to the enhanced service offeringhad been most positive. Similar to the February Dynamex agreement, the DHL Express asset purchaseis asset light,” stated Alain Bédard, Chairman, President and Chief Executive Officer of TransForceInc.
“Since our initial announcement of this strategic alliance, we have been working closely withTransForce to ensure a smooth and stable transition,” said Ken Allen, Chief Executive Officer ofDHL Express. “Our primary commitment is to provide the highest quality international shipping. Welook forward to the strategic alliance with TransForce to continue offering seamless integratedshipping solutions.” From the perspective of DHL Express, the alliance strategy has worked verywell in other major markets for DHL customers and the same is expected in Canada, he added.
DHL stressed that there will be no impact on other DHL businesses and operations in Canadaand all other regions and countries globally. With over 5,000 employees working for DHL Express,DHL Global Forwarding, DHL Supply Chain, DHL Global Mail and Williams Lea, Canada continues to bean important market for the company.
