(Reuters) - Britain’s Royal Mail Plc (RMG.L) said on Tuesday it acquired California-based regional parcel delivery firm Golden State Overnight Delivery Service Inc (GSO) for $90 million.
Britain’s former postal monopoly said its ground-based parcel delivery unit, General Logistics Systems (GLS), bought GSO on a debt-free and cash-free basis, and that the acquisition would be funded from existing cash reserves.
Royal Mail said it was looking to boost its geographic footprint and that GSO was attractively positioned for growth within its existing markets.
GSO generated revenue of about $114 million in the year ended March 31. Its existing team, including CEO and founder Dana Hyatt, will continue to work in GSO, which would function as a separate entity within GLS, Royal Mail said.
Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Gopakumar Warrier