Monday January 17, 2022

Posti stops operations in Russia

Published : 08 Dec 2021, 02:30

  DF Report

DF File Photo.

Posti Group has completed the divestment of companies forming the Itella Russia business group to the international logistics services provider Tablogix.

After the divestment, Posti has no operation in Russia, said the national postal and logistic services operator Posti in a press release on Tuesday.

The divestment of Itella Russia supports Posti’s strategy of seeking growth from its parcel and e-commerce as well as logistics businesses in the Nordic and Baltic countries.

The parties have agreed not to disclose the transaction price.

Itella Russia focuses on contract logistics and transportation with warehousing and freight services in Russia’s major economic regions. In 2020, the business group generated net sales totalling EUR 58.3 million or about four per cent of Posti Group’s net sales, and its adjusted EBITDA was EUR 12.6 million.

Itella Russia has a total of about 1,000 employees, who will transfer to the employment of the new owner.

Jussi Kuutsa, President of Itella Russia, will leave his position as member of the Leadership Team of Posti Group.

Posti will continue its rapid renewal, and the divestment of the Russian operations is part of its strategy execution.

“The divestment of Itella Russia operations allows us to focus on growth according to our renewed strategy. The core of Posti’s growth is in parcels and logistics services in Finland, Sweden and the Baltics. Posti expanded to Russia more than a decade ago. Since then, the general development of the Russian market has created significant challenges for the industry. Despite the market situation, the performance and profitability of our Russian operations have improved significantly in recent years. Nevertheless, there continues to be significant uncertainty regarding general market development in Russia, and we do not find synergies between our Russian operations and Posti’s other business groups. Therefore, we concluded that Posti is not the best owner for the Russian operations, and we have decided to divest this business group. The transaction ensures continuity for Itella Russia’s customers and employees, which is important to us,” said Turkka Kuusisto, President and CEO of Posti Group.

TABLOGIX is one of the leading service providers operating in the Russian logistics market since 1994.