Canada Post acquires Progistix to compete for 3PL business

OTTAWA (May 11, 2001) — Canada Post has agreed to buy a majority interest in Progistix-Solutions, a third-party logistics subsidiary of Bell Canada.

The deal “will enable Canada Post to move quickly into the growing and competitive integrated third-party logistics business,” Canada Post president and CEO Andre Ouellet said in a press release.

Progistix specializes in logistics solutions for companies in the technology sector.

Intelcom Courier Canada, a Montreal-based, same-day delivery and logistics company, will hold a minority stake in Progistix. As part of the transaction, Canada Post said will also become a shareholder and “important partner” of Intelcom. The completion of these transactions is subject to regulatory approval.

“This is part of a global trend for distribution, transportation and logistics companies to consolidate, often with postal administrations, to provide greater scale, reach and seamless end-to-end service offerings,” Ouelet said.

“There is no doubt this is the direction Canada Post must take,” Ouellet said. “We have broad reach, and decades of experience in the delivery industry; now we must develop a strong presence in providing fully integrated logistics solutions. If we don’t move into these areas, our ability to compete in the distribution business and, ultimately, our ability to provide universal affordable service to Canadians, will be undermined.”