Ottawa, July 16, 2001
Canada Post has finalized its acquisition of Progistix-Solutions Inc. (Progistix), a wholly-owned, third party logistics subsidiary formerly owned by Bell Canada. The purchase gives Canada Post immediate presence in the promising integrated logistics market, blending its own delivery reach and brand equity with the logistics management expertise for which Progistix has earned a strong reputation.
Each company will continue to function separately while the parties work to take advantage of identified synergies this transaction will enable.
"Whether you're moving consumer goods, technology equipment or office supplies, the company that offers integrated end-to-end supply-chain services has a very clear competitive edge," said Yvon Bolduc, Vice president of Corporate Development, Canada Post. "This is the direction the distribution market is moving towards; we have taken the initial steps to become an important player in Canada. Our success in this and other business endeavours will help ensure our ability to continue to provide universal, affordable postal service to Canadians."
The transaction with Progistix affords Canada Post entry to the rapidly growing logistics business, core contracts that offer an excellent base for growth, an experienced employee base and fully scaleable technology that synchronizes with Canada Post's own SAP business transformation systems.
Jim Eckler, President and CEO of Progistix, views the new relationship as a win-win situation. "Progistix stands to gain from Canada Post's strong brand, innovative services and existing business relationships. Equally, Canada Post will gain by offering its clients fully integrated logistics services, a capability that is in great demand in today's marketplace."
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.
For further information, contact:
Ida Irwin
(613) 734-8141
ida.irwin@canadapost.ca
