Postal giant Royal Mail has ventured into the US market by buying a next day delivery company in a deal that will cost the former state-owned company $90m (£70m).
Golden State Overnight Delivery Service Inc (GSO) which operates in principally in California, was bought by Royal Mail through its European subsidiary General Logistics Systems (GLS).
Although letter deliveries at parent Royal Mail are declining, GLS has reported double-digit revenue growth and GLS's chief executive Rico Back said that the purchase was in line with strategic expansion goals:
GSO operates in an attractive regional market representing the world's fifth largest economy, and provides GLS with an opportunity to grow GSO within its existing footprint.
Read more: Royal Mail increases stamp prices (just)
In June, GLS purchased ASM Transporte Urgente (ASM) for €71m. It hoped that the deal would provide "GLS Spain with significantly enhanced size and scale, enabling it to offer a comprehensive national and international service".
GSO generated $114m of revenue in the last 12 months and also has a presence in Arizona, Nevada and New Mexico. GLS said that it didn't plan to meddle with the company after the purchase, saying that the US company would operate as a separate legal entity.
The corporate activity comes just a week after Deustche Post DHL swallowed up UK Mail for £243m – a price that led to shares rocketing over 40 per cent.