Harris Williams Advises Dicom Transportation Group, L.P. on the Sale of its Canadian Subsidiary to General Logistics Systems B.V., a Subsidiary of Royal Mail plc
Harris Williams, a preeminent middle market investment bank focused on the advisory needs of clients worldwide for more than 25 years, announces the sale of Dicom Transportation Group, L.P.’s (Dicom) Canadian Subsidiary (Dicom Canada) to General Logistics Systems B.V. (GLS), a subsidiary of Royal Mail plc (Royal Mail). Dicom is a portfolio company of Wind Point Partners. Dicom Canada is a leading regional transportation company providing ground-based parcel, freight and logistics services in Canada with a focus on Ontario and Quebec. The transaction, led by Frank Mountcastle, Jeff Kidd and Nick Petrick of Harris Williams’ Transportation & Logistics (T&L) Group, extends the firm’s track record in the sector.
“We are proud to have represented Dicom Canada in its sale to GLS / Royal Mail,” said Frank Mountcastle, a managing director at Harris Williams. “Dicom Canada has built a unique, market leading provider of parcel and LTL delivery services within eastern Canada, and we are excited to watch the continued success of the company in its partnership with GLS / Royal Mail.”
“Dicom Canada was a unique, complex transaction involving a corporate carve-out to a European strategic buyer,” added Jeff Kidd, a director at Harris Williams. “This transaction is an excellent example of Harris Williams’ ability and expertise in successfully executing complex, global transactions on behalf of our clients.”
Dicom Canada is a transportation and logistics company headquartered in Montreal, Quebec. Dicom Canada operates three business segments: Express, Freight and Logistics. Services provided include overnight and second‐day parcel, freight transportation, freight management and last mile services in the U.S. and Canada. Dicom Canada employs approximately 1,400 people directly and uses sub-contractors across some parts of the business.
Wind Point Partners is a leading Chicago-based private equity investment firm with approximately $2 billion in assets under management. Wind Point Partners focuses on partnering with top caliber management teams to acquire well-positioned middle market businesses where it can establish a clear path to value creation. The firm targets investments in the consumer products, industrial products, and business services sectors. Wind Point Partners is currently investing out of Wind Point Partners VIII, a $985 million fund that was initiated in 2016.
GLS, headquartered in Amsterdam, provides reliable, high-quality deferred parcel services for over 270,000 customers, complemented by logistics and express services. Through wholly owned and partner companies, the Group provides a network coverage of 41 European countries and nation states and eight U.S. states and is globally connected via contractual agreements. Over 70 central and regional transshipment points and more than 1,000 depots are at GLS' disposal. With its ground-based network, GLS is one of the leading parcel service providers in Europe. In the financial year 2017-18 GLS achieved revenue of £2.56 billion, and accounted for 33 percent of Royal Mail plc's adjusted operating profit after transformation costs, up from 29 percent in the financial year 2016-17.
Royal Mail plc is the parent company of Royal Mail Group Limited, the leading provider of postal and delivery services in the UK and the UK's designated universal postal service provider. UK Parcels, International & Letters (UKPIL) comprises the company's UK and international parcels and letters delivery businesses operating under the Royal Mail and Parcelforce Worldwide brands. Through the Royal Mail Core Network, the company delivers a range of parcels and letters products, including the one-price-goes-anywhere Universal Service products. Royal Mail has the capability to deliver to more than 30 million addresses in the UK, six days a week (excluding UK public holidays). Parcelforce Worldwide operates a separate UK network which collects and delivers express parcels. Royal Mail also owns General Logistics Systems (GLS) which covers 41 countries and nation states in Europe and eight states in the Western U.S. GLS operates one of the largest ground-based, deferred parcel delivery networks in Europe.
Harris Williams (www.harriswilliams.com), a subsidiary of the PNC Financial Services Group, Inc. (NYSE:PNC), is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise and an unwavering commitment to excellence. Harris Williams provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services.
Harris Williams’ T&L Group serves companies in a broad range of attractive niches, including automotive and heavy duty vehicle, third-party logistics (3PL), truck, rail, marine and air transportation, and transportation equipment. For more information on the firm’s T&L Group and other recent transactions, visit the T&L Group’s section of the Harris Williams website.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.