Radial Assets Seen As Complementary to bpost

An executive with bpost cross-border unit Landmark Global said it will be able to help customers of new sister company Radial expand into markets in Europe and Asia, while Radial can provide a range of value-added ecommerce and omnichannel services for bpost’s customers in those same markets.

As well, Landmark Global can up its game in domestic fulfillment by leveraging Radial’s strong position here, said Pierre Winand, President of the Americas, Landmark Global. bpost plans to close its $820 million acquisition of Radial later this year.

“In terms of domestic fulfillment, (Landmark Global) was very small potatoes,” Winand said. “Suddenly we’re in the first league with Radial’s strong presence in the U.S., providing service to the whole country. We can also use their incredible know-how to replicate their success in other geographies, particularly in Europe, expanding outside the U.S. while continuing to grow strong here.”

Landmark Global, which bpost acquired in 2012, arranges transportation abroad, duty and customs clearance and last-mile delivery in foreign markets for U.S. merchants. A lot of the exports are going to Canada, as well as the UK, Australia, Europe, China and other parts of Asia. “Wherever U.S. e-tailers sell their product, we take care of it,” Winand said. “Depending on the weight, speed and destination, we have various contracts with local carriers and choose the best one for that parcel.”

Winand said Radial has been a client of Landmark Global for a few years, although that’s been a small part of the former’s business until now, principally in England and Germany. “Cross-border is growing faster worldwide than domestically, so hopefully Radial’s clients with continue to grow even faster on the cross-border side, and we can help with that,” he said.

As is the case with the U.S. Postal Service and other traditional postal agencies, bpost has seen its letter volume decline as parcel delivery – mainly due to ecommerce – increases. This is why the company has been expanding into other markets and service offerings through acquisition. Bpost is half owned by the Belgian government, responsible for daily parcel and letter service to the country’s 11 million residents, and half owned by shareholders.

Fifty-eight percent of bpost’s revenue comes from letter delivery, 16% from its parcel business and the remainder from value-added services such as banking and financial service products and international mail.

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