GLS to acquire 20% of ACS Postal Services SMSA

International Distribution Services plc

(Incorporated in England and Wales)

Company Number: 8680755

LSE Share Code: IDS

ISIN: GB00BDVZYZ77

LEI: 213800TCZZU84G8Z2M70

21 October 2024

International Distribution Services plc (“IDS”): General Logistics Systems B.V. (“GLS”) agrees to acquire 20% of the shares in ACS POSTAL SERVICES SMSA (“ACS”).

IDS announces today that its subsidiary GLS has entered into a definitive agreement to acquire 20% of the shares¹ in ACS (the “Acquisition” or the “Transaction”) from Quest Holdings’ for a total consideration of €74 million¹.  

ACS is the largest parcel carrier in the domestic Greek parcels market and serves over 30,000 customers. Its network provides 100% coverage across mainland Greece and the Greek islands, and is comprised of over 271 ACS outlets operated by exclusive independent agents offering competitive and flexible collection and delivery services, 269 parcel shops and eight hubs. This includes a new, highly automated central hub in Athens that was recently opened in 2022. During the twelve-month period ended June 2024 ACS generated revenue² of approximately €155 million and adjusted EBITDA² of approximately €29 million.

ACS has been operating as the GLS network partner in Greece since 2004. The investment in ACS is consistent with GLS’ strategy to strengthen its parcel operations, including within the cross-border deferred segment. In addition to the initial investment, GLS has also secured a call option to acquire the remaining 80% of the share capital of ACS within two years³. GLS will have the right to appoint two directors to the company’s Board of Directors during the minority investment period.

Commenting on today’s announcement, Martin Seidenberg, Chief Executive of IDS, said:

“ACS represents a significant and rare opportunity to invest in a leading independent carrier in Europe, which fully supports GLS’ strategy. We are committed to building on GLS’ history of successful organic and inorganic growth in Europe and this investment will improve our service offering in the largest market within the EU which is not served by the GLS network today.”

Commenting on today’s announcement, Dr Karl Pfaff, Chief Executive of GLS, said:

“ACS has been a high-quality network partner for GLS in Greece for many years and represents a great fit for our business. The investment in ACS fully supports our strategy of expanding our cross-border network. I am delighted to welcome the entire ACS team more closely into the GLS family and look forward to working with them in the coming years to share the benefits of what our two networks have to offer and bring those wider benefits to our customers within Greece and Europe.

Commenting on today’s announcement, Apostolos Georgantzis, Chief Executive of ACS, said:

“This is a significant development for our company, and we are very excited to work more closely with GLS and IDS Group. This development will strengthen our positioning in the Greek market as the leading player in the evolution of the courier and parcel delivery market and give us further access to the GLS Network as well as to products, services and solutions that will enhance our offering and deliver more value to our customers.”

Timetable and regulatory

The results of ACS will be consolidated within GLS under the equity method of accounting for reporting purposes after the Transaction closes, and fully consolidated in the event that GLS exercises its call option and completes the Acquisition of the remaining 80% of the share capital of ACS.

1.     In all cases the consideration paid will be on a cash free debt free basis subject to customary completion adjustments.

2.     Source: unaudited results for the period between 1 July 2023 and 30 June 2024, and adjusted for out of scope items.

3.     To be exercised on 31 October 2025 or 30 October 2026. In the event that GLS does not exercise this call option Quest Holdings will have the right to repurchase from GLS and GLS the right to sell 20% of ACS’ share capital to Quest Holdings unless certain criteria are met, in which case this period can be unilaterally extended by Quest Holdings to 29 October 2027.

Enquiries

Investor Relations                                                                                   

John Crosse                                                                                       

Email: investorrelations@ids-plc.com

Media Relations                                                                               

Jenny Hall

Phone: 07776 996036

Email: jenny.hall@royalmail.com

Greg Sage

Phone :07483 421374

Email: greg.sage@royalmail.com

Royal Mail press office: press.office@royalmail.com

Company Secretary

Matthew Newman

Email: cosec@ids-plc.com

The person responsible for arranging the release of this announcement on behalf of IDS plc is Matthew Newman, Company Secretary.

Forward-Looking Statements

This document contains certain forward-looking statements concerning the Group’s business, financial condition, results of operations and certain Group’s plans, objectives, assumptions, projections, expectations or beliefs with respect to these items. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as ‘anticipates’, ‘aims’, ‘due’, ‘could’, ‘may’, ‘will’, ‘would’, ‘should’, ‘expects’, ‘believes’, ‘intends’, ‘plans’, ‘potential’, ‘targets’, ‘goal’, ‘forecasts’ or ‘estimates’ or similar expressions or negatives thereof.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Group’s actual financial condition, performance and results to differ materially from the plans, goals, objectives and expectations set out in the forward-looking statements included in this document.

All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to the Group or any persons acting on its behalf are expressly qualified in their entirety by the factors referred to above. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. No assurance can begiven that the forward-looking statements in this document will be realised; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Subject to compliance with applicable law and regulation, the Group does not intend to update the forward-looking statements in this document to reflect events or circumstances after the date of this document, and does not undertake any obligation to do so.

About GLS

GLS, General Logistics Systems B.V. (headquartered in Amsterdam), is one of the largest ground-based providers of deferred parcel delivery services in Europe with a growing presence in North America. GLS has a growing international footprint which currently includes around 40 countries and nation states.

GLS has a proven track record of delivering top line growth, strong margins and good cash flow generation. Its flexible operating model, B2B/B2C balance and geographic diversity provides a strong platform for further organic and inorganic growth.

GLS’ strategy, which builds on our distinctive and proven business model, is focused on three key objectives: strengthen GLS’ top position in the cross-border deferred parcel segment; strongly position GLS in the 2C parcel market, whilst securing its leading position in the 2B segment; and implement innovative digital and sustainable customer-focused solutions. In FY2023-24, GLS generated £4,865 million or € 5,635 million revenue which accounted for 38% of total IDS revenue and £320 million or €371 million adjusted operating profit. GLS has around 23,000 employees, 120 network hubs, c.88,000 out-of-home points, and c.1,600 depots (including franchises and agencies).

Further information about GLS’ strategy is included on pages 18 to 19 of IDS’ 2023-24 Annual Report.

About ACS

ACS Postal Services S.M.S.A., founded in 1981, is the leading company in the field of courier services, in Greece. The company has the largest autonomous network in Greece, with more than 750 service points and 3,500 specialised employees. ACS is leading in its market by continuously investing in innovative systems, infrastructure and automation, to enhance and expand its service offering. It has more than 60,000 m2 of operational and warehouse space, handling more than 55 million shipments (courier and post) annually while its network presence extends to Cyprus, Albania and Bulgaria. Find more information about ACS at http://www.acscourier.net.

About Quest Holdings

Quest Group is an established, dynamically growing and financially sound Greek Group of Companies. Quest Holdings SA, the Group’s parent company was founded in 1981 in Greece, under the trade name Info-Quest Ltd, and has been listed in the Athens Stock Exchange since 1998. Pioneering in the sector of Information Technology, during its 43-year course, the Group has associated its name with the development of the Greek IT market as well as with the introduction and development of new technologies in Greece. Always setting high quality goals, its operation is based on the principles of sustainable development and driven by its values and people. Today, Quest Group is active and continues to evolve in the sectors of Information and Communication Technology Products, Wholesale and Retail, Information Technology Services, and the Production of Energy from Renewable Sources, with activities across Europe and South East Mediterranean countries. The Group’s companies employ more than 3,000 highly-skilled employees and executives and collaborate with the largest companies at an international level, creating Greek added value. Quest Group has a track record in creating value for its shareholders, employees and customers and its consolidated revenue reached €1.2bn in 2023. Find more information about Quest Group at http://www.quest.gr/en.