PostNord today announced it will buy Green Cargo Logistics, a subsidiary of Swedish Railways’sfreight company Green Cargo, in its latest regional logistics expansion step.
Green Cargo Logistics is Sweden’s second-largest company in third-party logistics with revenuesof some SEK 1 billion (€112 million) and operating profits of SEK 61 million (€7 million) in 2011.It has total warehousing space of 260,000 sqm in facilities in Stockholm, Norrköping, Gothenburg,Helsingborg and Copenhagen.
PostNord generated logistics revenues of about SEK 13 billion (€1.45 billion) in 2011 fromparcels, express and freight transportation. The latest acquisition is a further step in itslogistics growth strategy.
“Green Cargo Logistics is a well-managed and profitable business and an excellent fit with ourstrategic ambitions within the logistics area. The business will constitute a solid foundation forour continued development within third-party logistics,” commented Lars Idermark, CEO ofPostNord.
Following the sale, Green Cargo will focus on its core rail freight transportation services.Green Cargo Logistics will become part of PostNord’s logistics division and will be re-branded at alater date.
The acquisition is subject to approval by the relevant competition authorities.
