Royal Mail : GLS Acquires ASM Transporte Urgente

News Release

20 June 2016

GLS acquires Spanish express parcels delivery company, ASM Transporte Urgente

Royal Mail plc (RMG.L) today announces that the Spanish subsidiary of its European parcels business, General Logistics Systems (GLS), has acquired the Spanish express parcels delivery company, ASM Transporte Urgente (ASM).

The acquisition provides GLS Spain with significantly enhanced size and scale, enabling it to offer a comprehensive national and international service. GLS Spain largely operates in the export market, with international connections through the GLS network. The acquisition of ASM will strengthen its domestic offering.

ASM is Spain's second biggest express parcels network, with 16 hubs and branches and more than 1,500 daily distribution routes. Operating mainly in the business-to-consumer segment, it accounts for around 10 per cent of Spain's domestic parcels market and delivered 25 million parcels last year.

The total consideration is around €71 million. ASM generated revenue of approximately €78 million in the year ended 31 December 2015. Given the potential synergies, the transaction is expected to be economic profit accretive for GLS in 2018-19.

Rico Back, Chief Executive Officer, GLS, said:'ASM is a great strategic fit for GLS. It gives GLS Spain a significantly increased footprint in both size and scale. The combination of ASM and GLS Spain means customers can benefit from a high-quality, express parcels service within Spain and also in the growing cross-border market. I am excited to see us combine our strengths and pursue our aim of best-in-class customer service'.

ENDS

- Post tax earnings minus (total amount invested x cost of capital)

Media Relations

Royal Mail plc

Beth Longcroft on 07435 768549 orBeth.Longcroft@royalmail.com

Harshna Brahmbhatt on 07435 957464 orharshna.brahmbhatt@royalmail.com

GLS

Anne Putz on +49 (0) 172 1781 105 oranne.putz@gls-germany.com