Total Express, one of the leading express companies in Brazil, has been bought by Grupo Abril, oneof the country’s largest media groups, which is expanding in the logistics sector.
DGB (Distribuição Geográfica do Brasil), Abril Group’s logistics and distribution holding,bought 90 per cent of Total Express while the other 10 per cent remain with company co-founderMarcos Monteiro. The acquisition price was not disclosed.
This is Abril Group’s second logistics and distribution move this month. Early in November,DGB launched a new company in the market, Entrega Fácil, targeting Brazil’s more than four thousande-commerce websites which generate over R$15 billion per year in revenues.
Total Express, founded in 1993, focuses mostly on the parcels and light freight market andhas built up a strong position in e-commerce in particular. It serves 800 Brazilian municipalitiesthrough branches and accredited agents, offering deliveries within 24 hours to the main cities. Itsrevenues are not disclosed.
According to Fernando Mathias, DGB Superintendent Director, Entrega Fácil and Total Expresswill soon start to explore other positions and service levels. “The convergence of some services,as is the case with e-commerce, actually represents a huge opportunity for Entrega Fácil to ventureinto the express delivery market and other logistics projects,” he said.
Mathias believes the acquisition will allow DGB to broaden its network and use certainshortcuts, increasing frequency for all municipalities and enhancing traceability tools. Accordingto Mathias, delivery capacity is expected to grow from the current 50,000 to 200,000 volumes/day in2012.
Incorporated in 2008, DGB encompasses four different companies: three are responsible fordistribution activities (Dinap, FC Comercial and Magazine Express), while the fourth, Treelog, isGrupo Abril’s logistics arm. DGB currently has approximately 1,200 employees and over 200distributors and branches strategically placed throughout the country.
Since its incorporation, DGB has already invested about R$ 200 million in structure, newbusinesses and acquisitions, including Total Express. In 2012, the company expects revenuestotaling R$ 600 million, which would indicate an 80 per cent growth compared to 2011.
For Fábio Barbosa, CEO of Abril S.A., the holding responsible for all of Abril Group’s media,printing and distribution operations, the acquisition of Total Express is perfectly aligned withthe holding’s objective. “In addition to expanding Abril’s operations in an extremely promisingmarket, this deal, along with the release of Entrega Fácil, reinforces Abril’s commitment towardsproviding everything from information to material goods for each Brazilian citizen, regardless ofwhere they are,” he says.
Giancarlo Civita, Vice-Chairman of Abrilpar, the Civita family holding that controls AbrilS.A. – media, printing and distribution – and Abril Educação S.A., as well as several otherventures, says that the group is taking another important step towards consolidating its presencein all segments in which it operates throughout Brazil. “This acquisition represents another leapforward in the history of Abril’s 60 years of success. More than that, it consolidates ourcommitment to this country, whether by publishing content, culture and entertainment, or bycontinuously searching for logistics and distribution solutions, reaching consumers in every regionof the country,” he says.
