Royal Mail parent IDS to offload US freight divisions

12th Aug 2024 11:52

(Sharecast News) - Royal Mail parent International Distribution Services (IDS) announced on Monday that its parcel services subsidiary, GLS, would sell its US freight divisions to California-based DC Logistics.

The move was part of GLS' strategic focus on enhancing its core parcel services.

According to Reuters, the divestment would include GLS US Freight and GLS US Business Solutions.

DC Logistics specialises in less-than-truckload (LTL) trucking and warehousing solutions.

IDS did not disclose the financial terms of the transaction, which was set to be completed by 1 September.

The sale came as IDS was poised for a £3.57bn takeover by Czech billionaire Daniel Kretinsky.

In a statement, IDS emphasised that the transaction supported the goal of GLS US reinforcing its position as the preferred parcel delivery provider for US customers.

The freight services in other markets where GLS operates would remain unaffected by this sale.

At 1142 BST, shares in International Distribution Services were up 0.71% at 339.8p.

Reporting by Josh White for Sharecast.com.