Ottawa, Thursday May 10, 2001 - Canada Post announced today that it has reached an agreement to acquire a majority interest in Progistix-Solutions Inc. (Progistix), a wholly-owned, third party logistics subsidiary of Bell Canada. Canada Post is partnering in the acquisition of Progistix with the Intelcom Group, a Montreal-based, same-day delivery and logistics solutions company, which is acquiring the remaining minority interest in Progistix. As part of this transaction, Canada Post will also become a significant shareholder in the Intelcom Group. The completion of these transactions is subject to regulatory approval.
"These strategic initiatives will enable Canada Post to move quickly into the growing and competitive integrated third party logistics business, offering Canadian businesses supply chain management services that were previously unavailable," said André Ouellet, President and CEO for Canada Post. "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."
"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."
"Our partnership with Canada Post will facilitate the Intelcom Group's growth in the same-day delivery business," said Sylvain Hurtubise, Vice President of the Intelcom Group. "This association with Canada Post and our joint acquisition of Progistix will enable all parties to develop synergies in addition to increasing the range of services offered. We are now in a better position to respond to the challenges of e-commerce including storage, inventory management and order preparation and delivery, within thirty minutes or several days, depending on the customer's needs."
"Progistix is pleased to participate with Canada Post and the Intelcom Group in this innovative venture," said Jim Eckler, President and CEO of Progistix-Solutions Inc. "Progistix has become a Canadian leader in offering logistics solutions for companies in the technology sector. We expect to leverage our logistics management capabilities and expertise with those of our new owners, Canada Post and the Intelcom Group, for the mutual benefit of our organizations and our clients. Coupled with Canada Post's strong brand franchise we expect that Progistix will have greater opportunities to expand its geographical reach and broaden the scope of our logistics solution services."
Progistix-Solutions Inc., one of Canada's largest third party logistics services companies, specializes in logistics solutions for companies in the technology sector. By leveraging the electronic connection of supply chain processes, Progistix helps clients reduce their operating costs while simultaneously improving their operating performance and customer service. Services include many specialized logistics functions, from on-site equipment testing and e-commerce fulfillment, to vendor-managed inventory and super fast order fulfillment for field service technicians. With a national service and distribution network, very rapid cycle times and comprehensive information for analysis and decision making are the expected norm from Progistix.
Founded in 1986, the Intelcom Group has its head office in Montréal as well as an office in Québec City and delivers throughout much of the province. Intelcom Group is Montréal's leading same-day local delivery company and is among Canada's top ten in the field. The company is also one of the best equipped in terms of shipment management software. Its customer base is made up of professional offices (75% of Montréal's downtown legal firms), financial institutions, realtors and health-care companies.
Ida Irwin
Canada Post
613-734-8141
ida.irwin@canadapost.ca
Steve Phinney
Progistix
416-401-7139
steve.phinney@progistix.com
Sylvain Hurtubise
The Intelcom Group
514-937-7921 ext. 225
shurtubise@intelcomgroup.com
