UK Royal Mail's international unit buys Dicom Canada for $275.7 mln

The international arm of Britain’s Royal Mail, a postal service and courier company, has bought peer Dicom Canada for 360 million Canadian dollars ($275.7 million), adding to its growing operations in a number of U.S. states and across Europe.

The acquisition from Chicago-based private equity firm Wind Point Partners comes as Royal Mail aims to boost revenue share from outside the UK through its international unit, Dutch logistics company General Logistics Systems (GLS).

This deal is in line with GLS’ strategy to grow through targeted and focused acquisitions to capture higher growth segments outside Europe.

The transaction, which takes Royal Mail into Canada, was funded through existing borrowing facilities and will be earnings and cash flow accretive in the financial year ending March 31, 2019.