Press Release


TNT acquires LIT Cargo of Chile

Publish Date : 16 February 2009 at 08:15 CET - Amsterdam, TNT announces the acquisition of 100 per cent of LIT Cargo, a leading express delivery company in Chile. The acquisition gives TNT a strong nationwide road network in Chile and strengthens its position in the country's domestic express delivery market. Furthermore, it adds a key building block to the development of its South American Road Network (SARN), linking Chile to Brazil and Argentina. The acquisition fully fits with TNT's strategy to become the intra-regional express leader in South America and to leverage this regional strength to grow intercontinental flows.

Created in 1952, LIT Cargo is a family-owned, profitable road express company with 1,500 employees. The company operates a nationwide, highly automated express parcel network, comprising of 55 depots and 496 vehicles. LIT Cargo's compound annual revenue growth of 25% over the past three years has outpaced that of the Chilean market. The company serves several key vertical markets, including automotive, pharmaceuticals and high tech.

Marie-Christine Lombard, Group Managing Director Express, member of TNT's Board of Management, said: “TNT is on its way to becoming the intra-regional express leader in South America. We are developing strong operational platforms in Chile and Brazil to offer customers an integrated portfolio of domestic, cross border and intercontinental services.”

Note to the editors:
The €165 million Chilean domestic express market is expected to rise by about 21 per cent a year during the next five years. Before acquiring LIT Cargo, TNT was already a leading provider of express distribution solutions in Chile, operating primarily in the international sector. TNT started to service Chile in 1986 through an agent, and took ownership of its operations in 1995. It started to operate in the domestic express market in 2002.

The South American domestic express market was valued at about €2.2 billion in 2007. It has shown high double-digit growth rates – two to three times that of the Gross Domestic Product (GDP) – over the past years. Despite the current economic slowdown, South America's prospects, even if revised downwards, are for continued growth in 2009.

About TNT
TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximise its network performance. TNT serves more than 200 countries and employs more than 163,000 people. Over 2008, TNT reported €11.1 billion in revenues and an operating income of €982 million. TNT is officially quoted on the Amsterdam Stock Exchange. TNT recognises its social responsibility and has formed partnerships with the United Nations World Food Programme and the United Nations Environment Programme to fight hunger and pollution in the world. Our efforts are being recognised: in 2008 TNT again reached the highest score of all companies included in the Dow Jones Sustainability Index and in the Carbon Disclosure Project in the carbon intensive sector.

Page publication date: 16 February 2009 at 08:15 CET