TNT Post Buys Jet Services

PARIS — Holland’s TNT Post Group paid $360 million to acquire the French express delivery company Jet Services, giving the Dutch giant a greater presence in France.

TNT Post, which was formed after the privatized Dutch post office bought TNT Worldwide Express

or $1.5 billion in 1996, won the bidding for Jet Services “over several other interested parties,” said company spokesman Bouke de Vos.

Jet Services is a scrappy, innovative company that has challenged the big international integrators in France. It was one of the pioneers of dual-use aircraft that could be quickly converted from freight to passenger service.

Last year it had revenue of $360 million and operating profit of $32 million. The company handles 350,000 express documents and parcels each day. More than 90% of its business is in France, although the company recently bought the German domestic express company, Nacht Verteiler Service, which had revenue of about $100 million last year.

“We were primarily interested in Jet Services because of its presence in France,” Mr. de Vos said. “For us, France was a big white spot on our map.”

TNT Post has become one of the biggest express courier and parcels companies in the world, with revenue last year of $8.1 billion and operating income of about $700 million. According to Mr. de Vos, the company expects revenues to rise between 10% and 15% in 1998.

Although it was the world’s first privatized postal service, TNT Post still retains a mail monopoly in Holland, which competitors claim gives it an unfair advantage in other areas, such as express parcels and logistics. TNT Post has said it is ready to give up its monopoly once other state-owned European post offices do the same. In the meantime, the company has been socking away profits for acquisitions, and plans at least one more next year.

“Our chairman has said there will be another acquisition of this size before next Christmas,” Mr. de Vos said.

For the full story, see the Dec. 28 print edition of Transport Topics. Subscribe today.