Posti acquires in-house logistics company Suomen Transval Group Oy

For customers this means the most comprehensive logistics outsourcing solutions on the market

Posti Group Oyj continues its strategy of growth in logistics and acquires Finnish Transval Group Oy, a specialist in in-house logistics. The transaction will make Posti a major player in logistics outsourcing solutions in Finland.

The new entity will offer customers the most comprehensive services and supply chain solutions on the market, from transportation to warehousing and in-house logistics on customers' premises.

On 28 September 2018, Posti, MB Funds and other shareholders have signed an agreement under which Posti will acquire the entire share capital of Suomen Transval Group Oy. Transval is one of Finland's leading providers of in-house logistics services, with more than 20 years of experience in improving operational efficiency and implementing various outsourcing solutions, especially in logistics and industrial sites. Transval's turnover in 2017 was approximately EUR 148 million. It employs 3 500 logistics professionals, of which 3 200 work in Finland and 300 in Estonia and Latvia.

The transaction is subject to the approval of the Finnish Competition and Consumer Authority and the aim is to complete the transaction as soon as possible. The deal will be announced separately. Transval will continue to operate as an independent company and the transaction will have no impact on personnel.

Customer-oriented and comprehensive logistics outsourcing solutions

According to Risto Vilo, CEO of Transval, Posti and Transval will bring unique efficiencies to their customers.

- The aim is to continue to create cost savings and thereby increase customer competitiveness. Continuous improvement of operations and flexibility are key to service delivery, not forgetting professional staff. For us, every moment is an opportunity to do things a little better. Because in logistics, every moment counts," says Vilo.

The deal is a continuation of Posti's strategy to grow in logistics

In 2017, Posti updated its strategy to continue its determined renewal and pursue growth, particularly in parcels, e-commerce and logistics services. Posti's strategy is to be a customer-oriented and profitable Postal and logistics service provider.

The transaction, if completed, will be an important step for Posti to grow in line with its strategy in logistics services. Posti entered the in-house logistics market by establishing Flexo Palvelut Oy, a company specializing in in-house logistics, in 2017. In summer 2018, Posti launched the most digital and one of the largest freight terminals in Finland in Vantaa.

Posti's growth expectations in the logistics outsourcing market are driven by the restructuring of trade and the increasing demand for services, which require logistics to make new arrangements to meet customer needs. With the completion of the transaction, the combined logistics services of Posti and Transval will offer the most comprehensive logistics outsourcing solutions in Finland for several industries to increase customer competitiveness.

The market for outsourced logistics in Finland is worth more than EUR 6 billion

In Finland, the market for outsourced logistics is estimated to be well over EUR 6 billion, and outsourcing is estimated to be growing at a rate of up to 20% per year. In the field of in-house logistics, the growing area is in-house logistics for industrial production, while in the retail sector it is shelving of goods and product refurbishment.

Logistics outsourcing services include warehousing and terminal services, transport solutions, in-house logistics and flexible use of professional staff. In-house logistics refers to the handling of material flows on the customer's premises by the service provider's staff. Typical services include the reception, in-house transfer, collection and dispatch of goods in warehouses, terminals and industrial plants.