International Distributions Services, the parent company of Royal Mail, revealed on Monday that its parcel services subsidiary, GLS, plans to offload its US freight operations to California's DC Logistics. This move aligns with GLS's strategic focus on its primary parcel services, coinciding with the parent company's recent agreement to a £3.57-billion ($4.56 billion) acquisition by Czech billionaire Daniel Kretinsky, amidst issues like labor strikes, fierce competition, and market share decline. GLS Group is relinquishing the GLS US Freight and GLS US Business Solutions Inc units to DC Logistics, a firm specializing in less-than-truckload (LTL) trucking and warehousing services, according to IDS.
"The deal is in line with GLS US's strategy to concentrate on its core parcel service as it aims to solidify its status as the top parcel delivery choice for US clients," stated the London-based company in an official release. The divestment will not impact the freight services GLS provides in other markets. The financial specifics of the deal were not revealed, and the transaction is slated to finalize on September 1.
