DGB, Abril Group’s logistics and distribution holding, announces acquisition of 90% of Total Express

DGB, Abril Group’s logistics and distribution holding, announces acquisition of 90% of Total Express

This is the company's second logistics and distribution move; early in the month, DGB launched Entrega Fácil for small cargos, following the current economic and e-commerce expansion moment.

São Paulo, November 18, 2011 – DGB (Distribuição Geográfica do Brasil), Abril Group’s logistics and distribution holding announced the acquisition of 90% of Total Express, a company operating in the small and mid-size cargo delivery market for 18 years. The other 10% remain with company co-founder Marcos Monteiro.
This is Abril Group’s second logistics and distribution move this month. Early in November, DGB launched a new company in the market, Entrega Fácil, targeting over four thousand e-commerce sites around the country, which currently negotiate over R$ 15 billion per year, under high growth rates.

This transaction further consolidates DGB's position in the market. Total Express now relies on DGB's capillarity and frequency, which currently services more than two thousand municipalities at least twice a week. Total Express tends to the main companies in the door-to-door sales and e-commerce segment, establishing itself as a one of the major players in this market. Between the corporate headquarters and branches, the company holds a total of 30,000 m² for storage, handling and routing operations, servicing 800 municipalities through branches and accredited agents.

According to Fernando Mathias, DGB Superintendent Director, Entrega Fácil and Total Express will soon start to explore other positions and service levels. "The convergence of some services, as is the case with e-commerce, actually represents a huge opportunity for Entrega Fácil to venture into the express delivery market and other logistics projects," he says. Mathias believes the acquisition will allow DGB to broaden its network and use certain shortcuts, increasing frequency for all municipalities and enhancing traceability tools. According to Mathias, delivery capacity is expected to grow from the current 50,000 to 200,000 volumes/day in 2012.

For Fábio Barbosa, CEO of Abril S.A. (holding responsible for all of Abril Group’s media, printing and distribution operations), the acquisition of Total Express is perfectly aligned with the holding's objective. "In addition to expanding Abril’s operations in an extremely promising market, this deal, along with the release of Entrega Fácil, reinforces Abril's commitment towards providing everything from information to material goods for each Brazilian citizen, regardless of where they are," he says.

Giancarlo Civita, Vice-Chairman of Abrilpar (Civita family holding that controls Abril S.A. – media, printing and distribution – and Abril Educação S.A., as well as several other ventures), says that the Group is taking another important step towards consolidating its presence in all segments in which it operates throughout Brazil. "This acquisition represents another leap forward in the history of Abril's 60 years of success. More than that, it 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," he says.


About DGB

Incorporated in 2008, DGB (Distribuição Geográfica do Brasil) encompasses four different companies: three are responsible for distribution activities (Dinap, FC Comercial and Magazine Express), while the fourth, Treelog, is Grupo Abril's logistics arm. In early November, DGB launched Entrega Fácil, targeting the small cargo logistics market. DGB currently has approximately 1,200 employees and over 200 distributors and branches strategically placed throughout the country. Since its incorporation, DGB has already invested about R$ 200 million in structure, new businesses and acquisitions, including Total Express. In 2012, the company expects revenues totaling R$ 600 million, which would indicate an 80% growth compared to 2011.


About Grupo Abril

Abril Group’s is one of the largest and most influential communication and education groups in Latin America. Established in 1950, it currently employs more than seven thousand people. The Group is divided into the following areas: Media (Editora Abril, Mídia Digital, Elemídia, Alphabase and MTV); Printing and Distribution; and Abril Educação, which in 2010 started operating separately from Abril S.A. after a corporate reorganization. Abril provides information, culture, education, and entertainment for practically all target audiences, working on several media.

Additional Information:
Linhas Comunicação
www.linhascomunicacao.com.br
55 11 3465 5888
Ederaldo Kosa – ekosa@linhascomunicacao.com.br
Felipe Mazorca – felipe@linhascomunicacao.com.br