General Logistics Systems (GLS), the pan-European ground-based parcel delivery service provider owned by Royal Mail Group, has acquired the regional next day parcel delivery company, Golden State Overnight Delivery Service (GSO) for a total consideration of $90 million.
GSO is the leading provider of regional next day delivery services in California and also operates in Arizona, Nevada and New Mexico, delivering around 13.5 million parcels a year.
The company operates from a hub and spoke network of 36 facilities with nearly 2,000 employees, offering priority ground and freight shipping services, mainly to business-to-business customers.
GLS meanwhile has a European network that covers 41 European countries through wholly owned and partner companies and has its worldwide headquarters in Amsterdam. Its 14,000 employees handle 431 million parcels per year.
Rico Back, chief executive officer, GLS Group, said the latest acquisition was another step in a “careful and focused geographic expansion. GSO operates in an attractive regional market representing the world’s fifth largest economy, and provides GLS with an opportunity to grow within its existing footprint,” he said.
GSO, which generated revenues of around $114 million in the year ended 31 March 2016, will be fully consolidated within GLS for reporting purposes but will be managed as a separate entity. It was established in 1995 by Dana Hyatt, CEO, who will continue to lead the company, together with GSO’s existing management team.
General Logistics Systems