PostNord’s wholly-owned subsidiary, Tidningstjänst AB, has signed an agreement for the takeover of Svensk Morgondistribution KB operations. This agreement covers several years of distribution of the media group’s MittMedia and Västerbottens-Kuriren morning newspapers. Svensk Morgondistribution has 740 annualized employees and net sales of approximately SEK 350m in 2011.
ThroughTidningstjänstAB, PostNord is currently operating within newspaper distribution in Norrbotten, northern Västerbotten, Värmland, northern Dalsland, Skaraborg, Enköping, Motala and Vimmerby. These operations are characterized by high quality and a cost-efficient distribution. As part of the PostNord group, Tidningstjänst benefits from the groups expertise in areas such as route optimization.
Svensk Morgondistribution is owned by MittMedia (75%) and Västerbottens-Kuriren (25%) and operates in Dalarna, Gästrikland, Hälsingland, Jämtland/Härjedalen, Västernorrland and large parts of Västerbotten. Svensk Morgondistribution delivers approximately 100 million morning newspapers, including Sundsvalls Tidning, Dalarnas Tidningar, Gefle Dagblad, Östersunds-Posten and Västerbottens-Kuriren.
PostNord’s strategy through 2015 includes the development of profitable new businesses that will support the mail business, where the group is establishing new applications for existing production resources. Increased utilization of the group’s vehicle fleet creates additional business opportunities in areas such as morning newspaper distribution and home deliveries.
- The morning newspaper distribution industry includes significant economies of scale. By growing in this market, we can use the same vehicles to distribute morning papers during nighttime hours as we use for mail delivery during the day, resulting in major synergies, says Lars Idermark, PostNord’s President and CEO.
- By outsourcing the newspaper distribution, we are reducing our costs and ensuring the continued high levels of delivery assurance for our 17 daily papers. As a media company, we will also be able to increase our focus on our main task; developing the business and journalism of the future, says Thomas Peterssohn, President and CEO of MittMedia.
- Our newspaper distribution will be run by a group that is focused on distribution and logistics, producing an immediate cost reduction and enabling us to increase our focus on our core business; local journalism and commercial communications, says Sture Bergman, President and CEO of Västerbottens-Kuriren.
The transaction is subject to competition authority approval.