Royal Mail's Unit To Buy Mid-Nite Sun Transportation For $286.8 Mln

U.K.-based postal service provider Royal Mail plc (RMG.L) on Friday announced that its subsidiary General Logistics Systems would be acquiring Canadian logistics company Mid-Nite Sun Transportation Ltd., which operates as Rosenau Transport, for 360.0 million Canadian dollars ($286.8 million).

The transaction, likely to be closed on December 1, is expected to be earnings and cashflow accretive in the year ending March 31, 2022.

The U.K. based letter-and-parcel courier business said that it would be funding the debt-free and cash-free transaction through existing cash and borrowing facilities.

The linking of the two regional carrier networks that provide direct service to most cities and towns is likely to result in one of the most integrated transportation systems in Canada. GLS Canada also expects the extended geographical reach to be helpful to the company's 30,000 clients in getting a new, national and international alternative for all of their shipping needs.

Shares of Royal Mail plc closed Thursday's trading at 413.60 pounds, up 9.50 pounds or 2.35 percent from previous close.

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