TNT buys Indian express company Speedage

TNT buys Indian express company Speedage    Netherlands-based postal and express group TNT N.V., which recently agreed to sell its logistics unit to New York-based investment firm Apollo Management L.P., has acquired Indian road express company ARC India Ltd., which operates under the name Speedage Express Cargo Services. No financial details were disclosed.
   “Acquiring Speedage is in line with TNT’s strategic objective to become the leading provider of express deliveries in the emerging markets in Asia, specifically India. Combining Speedage’s strong domestic road network with TNT’s international and domestic networks will form a powerful platform for further expansion in the fast growing Indian express market,” TNT said.
   Speedage was established in 1995 and posted revenue of 17 million euros ($21.8 million) in 2005. Under terms of the acquisition, TNT will gain 514 depots, 26 transit hubs, 730 vehicles and 1,195 employees and about 1,300 sub-contracted staff. With the acquisition, TNT said its combined revenue in India will approach 100 million euros ($128.2 million) in 2007.
   “We are pleased to announce another excellent step in the implementation of our Focus on Networks strategy today. TNT will gain a top-three position in the fast growing Indian domestic road express market with the acquisition of Speedage,” said Peter Bakker, chief executive officer of TNT.
   “We believe that the combination of Speedage road-based capabilities with TNT’s international express operations will form the first integrated and strongest network available in India. Furthermore, it clearly complements our network strategy in Asia,” Bakker said.
   “The road-based Express segment is projected to more than quadruple in the coming decade. Furthermore, the sustainable economic growth in India, major government investments in infrastructure and an opportunity to leverage on Europe being the largest trade partner with India, should support us to reach our objective to become the market leader in express in India by 2010,” said Marie-Christine Lombard, group managing director of TNT’s express division.