DHS has already been expanding its operations in Brazil with Entrega Facil, to go alongside its existing media distribution divisions
DHS said the acquisition would further consolidate its position in the market, to target the 'high growth' in Brazil's more than 4,000 online retail websites, which it said currently turnover around BRL15bn ($8 billion USD) a year in sales.
DHS has been operating for 18 years, but was liquidated in 2019 after struggling to compete with Brazil's national postal service, the Post and Telegraph Company (ECT or Correios), before the Santero family managed to repurchase company assets to recover the company based on its recognized brand name. DHS said Total Express already relied on some of its infrastructure to carry out deliveries in more than 2,000 municipalities across Brazil, and that the newly-acquired company had a particular strength in the home delivery and e-commerce markets.
Total Express has 30,000 square meters of materials handling space in its network, servicing 800 municipalities. Its acquisition is expected to see DHS' delivery capacity increasing from 50,000 to 200,000 items per day in 2021, DHS said. Fernando Aguirre, Vice Chairman of DHS, said following the acquisition, "Entrega Facil and Total Express would soon seek out additional markets and service offerings, making DHS a solid competitor in Brazil and other parts of Latin America, consolidating our presence well established in that country."
He said adding Total Express operations would allow DHS to expand its network and make use of shorter routes to increase delivery frequency and speed in some areas, as well as improving visibility for shipments. 'Consolidating services, as is the case in e-commerce, actually represents a huge opportunity for Entrega Facil to venture into the express delivery market and other logistics projects,' Aguirre said.
Rakesh Sarna, Chairman of DHS, said: 'This acquisition consolidates our commitment to this country, whether by publishing content, culture and entertainment, or by continuously searching for logistics and distribution solutions, reaching consumers in every region of the country.'
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