− for customers, the acquisition will offer the most comprehensive logistics outsourcing solutions on the market
Posti Group Corporation continues its growth in logistics according to its strategy by acquiring Suomen Transval Group Oy, a company that specializes in in-house logistics. As a result of this acquisition, Posti will become a significant operator in logistics outsourcing solutions in Finland.
For customers, this new combined entity will offer the broadest services on the market, supply chain solutions from transport to warehousing as well as in-house logistics on the customer’s premises.
Posti, MB Funds and other shareholders have signed an agreement on September 28, 2018, on Posti acquiring the entire share capital of Suomen Transval Group Oy. Transval is one of the leading in-house logistics service providers in Finland with more than 20 years of experience in improving operational efficiency and implementing different outsourcing solutions, especially on logistics and manufacturing sites. Transval’s net sales in 2017 were approximately EUR 148 million. It employs 3,500 logistics professionals, of which 3,200 work in Finland and 300 in Estonia and Latvia.
Before the acquisition can be closed and become effective, it must be approved by the Finnish Competition and Consumer Authority. The goal is to complete the acquisition as soon as possible. Completion of the acquisition will be disclosed separately. Transval will continue to operate as an independent company and the arrangements will not have an impact on personnel.
Customer-centered and comprehensive logistics outsourcing solutions
According to Transval’s CEO Risto Vilo, Posti and Transval will produce unique efficiency for their customers.
“Our goal is to continue generating cost savings and thereby improve the competitiveness of customers. The continuous development of operations and flexibility and, of course, professional personnel are key factors in the production of the services. For us, each moment is an opportunity to do things even better. Since in logistics, each moment counts,” says Risto Vilo.
This acquisition is a continuation of Posti’s strategy to grow in logistics
Posti updated its strategy in 2017, and the company continues its determined efforts aimed at renewal and pursues growth in especially parcels, e-commerce and logistics services. Posti’s strategy is to be a customer focused and profitable service company in the postal and logistics industries.
This acquisition once completed and effective is a significant opportunity to increase the growth of its logistics services according to its strategy. Posti entered the in-house logistics markets by establishing Flexo Palvelut Oy specializing in in-house logistics in 2017. In summer 2018, Posti introduced one of Finland’s largest and most digitalized freight terminals in Vantaa.
Posti’s growth expectations on the logistics outsourcing markets are increasing due to the structural change taking place in trade and the growing demand for services, requiring new kinds of logistics arrangements to meet customers’ demands. As a result of the completed acquisition, the combined entity of logistics services of Posti and Transval will offer the most comprehensive logistics outsourcing solutions for several different industries to increase the competitiveness of customers.
The value of the outsourced logistics markets in Finland is more than EUR 6 billion
The value of the outsourced logistics markets in Finland is more than EUR 6 billion and the annual growth rate of outsourcing is up to 20%. A growing sector in the in-house logistics fields is the in-house logistics of the manufacturing industry and in trade the shelving of goods and refurbishments of products.
Logistics outsourcing services cover warehouse and terminal services, transport solutions, in-house logistics services on the customers’ premises and the flexible use of professional personnel. In-house logistics means the processing of material flows by the service provider’s personnel on the customer’s premises. Typical services are, for instance, reception of goods in warehouses, terminals and manufacturing plants, internal transfers, picking and shipping.
Sari Helander, Senior Vice President, Logistics Solutions., Posti Group Corporation
Risto Vilo, CEO, Suomen Transval Group Oy
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Posti is the leading postal and logistics service company in Finland. Our core business includes postal services, parcels, freight and logistics services. We have the widest network coverage in Finland and we visit about three million households and companies every weekday. We manage the flow of everyday life in 11 countries. Our net sales in 2017 amounted to EUR 1.6 billion and the number of our personnel is approximately 20,000. www.posti.com.