SingPost snaps up US eCommerce co
Singapore Post has paid S$236 million for a 96.3 per cent stake in a major US eCommerce business.
TradeGlobal is described as an end to end eCommerce provider offering services to more than 60 international premier fashion, beauty and lifestyle brands.
“Following this transaction, SingPost’s clients in Asia Pacific can now expand their businesses into the US. Likewise, TradeGlobal’s clients will have access to the fast growing eCommerce landscape in Asia Pacific,” SingPost said in a statement announcing the purchase.
“As SingPost’s and TradeGlobal’s eCommerce platforms and warehouse networks are complementary, their clients can expect to leverage integrated technology and fulfilment capabilities.
“This combination creates a one-stop global solution. The ability to deliver global scalable solutions will give SingPost a competitive edge in the eCommerce market.”
TradeGlobal was previously owned by a private equity company Bregal Sagemount.
Lim Ho Kee, SingPost’s chairman, said the investment makes sense “in many ways”.
“Together with TradeGlobal, SingPost can establish stronger market leadership and have a larger talent pool to drive a global eCommerce strategy. We will also be looking at a larger and deeper footprint. Increasingly, we need to take a ‘one world’ approach towards eCommerce,” said Lim.
SingPost eCommerce CEO Marcelo Wesseler added: “Full service eCommerce solutions have traditionally been geographically confined. This acquisition will offer a one stop solution for brands to grow their businesses globally. Using localised capabilities in the two largest eCommerce markets, Asia Pacific and North America, brands will also be able to provide their customers with a seamless shopping experience.
“This acquisition strengthens our eCommerce logistics platform by enhancing our scalability and capabilities, for instance to handle major surges in traffic and transactions during peak shopping seasons.”
The remaining 3.7 per cent of the shares will be held by the company’s founders, Dave Cook, executive chairman and Dave Eckley, CEO, who will continue in their current roles.
Earlier this week, SingPost confirmed the acquisition of US-based ‘logistics enabler’ Jagged Peak to its growing portfolio of eCommerce businesses.