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October 12, 2017

$820M deal: King of Prussia e-commerce company to be acquired

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Source, Philadephia Business Journal, Michelle Caffrey

A King of Prussia e-commerce and fulfillment company announced Monday it’s being acquired by a Belgian company as it mounts a growing challenge to industry giants like Amazon.

Radial, formerly known as eBay Enterprises, will be bought by Belgian mail and shipping company bpost in a $820 million deal expected to close in the fourth quarter of the year.

It employs about 400 people in the region but also operates 24 fulfillment centers and six customer service centers in the United States, Canada and Europe.

The scale of Radial’s operations, which focused on omnichannel tech to fuel brand’s online shopping capabilities as well as fulfillment, and its seasonal employee base is second only to Amazon in the nation. It works with major brands including Kate Spade, PetSmart and DSW and announced last month it’s pushing to hire 27,000 seasonal employees this fall, a 35 percent increase over last year.

Its expansive operations are a driving force behind why bpost, the largest employer in the small European country, is scooping up Radial, as it aims to expand its U.S. presence, Landmark Global, and compete with Amazon and other shipping giants.

“Radial represents the gold standard for profitable e-commerce and omnichannel technology arming merchants with the capabilities needed to operate at a global scale,” Radial CEO Matthew Espe said in a statement. “There has never been a more important time when it comes to helping brands grow their online business profitably, especially when reaching their customer base internationally. Joining the bpost family is a critical next step for both companies as we strive to help meet customer expectations on the backbone of industry- leading technology and services.”

bpost, based in Brussels, is a public company in Europe. It has annual revenues of $2.9 billion and shops about 8.6 million letters along with 175,000 packages daily.

“I’m very proud of this acquisition that represents a great leap forward for bpost, promoting us as a leading player in the e-commerce logistics business in the Benelux, Europe and throughout the world,” bpost CEO Koen Van Gerven said in a statement. “I’m convinced that offering integrated and seamless e-commerce logistic solutions to our US and European customers will help them grow their businesses. The expertise and capabilities of Radial employees are a unique complement to bpost and will help us in becoming a leader in e-commerce logistics. I’m very happy to welcome all Radial employees to our bpost family.”

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