Belgian Mail Carrier Bpost to Buy Amazon Rival Radial for $820 Million
Bpost SA, the European mail carrier controlled by the Belgian state, agreed to buy former eBay Inc. enterprise unit Radial to bolster its U.S. delivery services.
The deal has an enterprise value of $820 million, Brussels-based Bpost said in a statement Oct. 9. The deal — one of Bpost’s largest acquisitions — will boost the company’s earnings-per-share beginning in 2020 and is expected to close in the fourth quarter.
Bpost is counting on the deal to help it grow its share of business from e-commerce and grab a slice of the fast-growing logistics market. Radial’s services range from order management and fulfillment technology to fraud protection with customers including Adidas, GameStop and Spanx, according to its website.
Bpost’s shares slid about 1% in Brussels Oct. 9.
Based in King of Prussia, Pa., Radial was created last year when eBay Enterprise and fulfillment company Innotrac merged. eBay Enterprise was bought by a consortium of private equity firms including Sterling Partners and Longview Asset Management for $925 million in 2015.
Radial fulfilled more than 306 million units for its retail customers across 24 centers in 2016, according to the statement.
Expected “normalized” annual revenue for Radial this year is between $970 million and $1.02 billion with earnings before interest, tax, depreciation and amortization of as much as $70 million, it said.
Amazon is currently testing a new U.S. delivery service that will make more products available for free two-day delivery and relieve overcrowding in its warehouses, work that is handled by longtime partners United Parcel Service Inc. and FedEx Corp.
“There has never been a more important time when it comes to helping brands grow their online business profitably,” Radial Chief Executive Officer Matthew Espe said, “especially when reaching their customer base internationally.”
