Mailpac to acquire MyCart
Published:Wednesday | February 14, 2024 | 12:08 AMAvia Collinder/Business Writer
E-COMMERCE AND logistics company Mailpac Group Limited indicated yesterday that it will be acquiring cargo company MyCart Express, described as the second-largest courier company of its kind in Jamaica.
Freight company MyCart ships packages between the United States and the island and is run by principals Kamar Palmer and Aldane Smith. MyCart has six locations in Jamaica and also operates in the Cayman Islands.
The acquisition price was not shared, neither was the projected date for the closing of the deal.
Executive Chairman of Mailpac Khary Robinson said yesterday that after the closing of the transaction, the board of directors is expected to convene an extraordinary general meeting of the shareholders to propose that Mailpac Group be rebranded as MyPac Group.
He estimates that the acquisition will double his company’s reach.
Mailpac, which is a listed company on the Jamaica Stock Exchange, averages $1.6 billion in revenues annually. In the financial year ended December 2022, revenues were $1.69 billion, representing a 7.3 per cent decrease over 2021.
Net income was $308 million, a decrease of 22.4 per cent, compared to the previous year.
In the company’s latest financials, which are for the third quarter of 2023, it was reported that Mailpac generated revenues of $400.3 million, reflecting a 3.2 per cent decline, compared to the same period in the previous year. For the full nine months of 2023, revenue was $1.21 billion, down from $1.22 billion for the correspoding period in 2022.
Robinson said that the strategic transaction “not only positions the combined entity as the largest courier platform in the Caribbean, delivering over 1.5 million packages annually, but also merges the complementary management, service offerings, and geographic footprint of both entities to deliver superior growth to stakeholders”.
MyPac Group is expected, Robinson said, to operate independent e-commerce solution-based brands, including Mailpac (premium-service courier), MyCart (value-focused courier), Pack Yuh Barrel (digital barrel packing and shipments), and Mailpac Local (local online shopping).
The CEO stated, “While the management of each brand will remain intact, the group will be overseen by a management committee made up of Khary Robinson and Garth Pearce of Norbrook Equity Partners Limited, Mark Gonzales and Samantha Ray of Mailpac, and Kamar Palmer and Aldane Smith of MyCart.
“In addition to doubling the size and capacity of Mailpac Group, the transaction will see the owner-operators of MyCart becoming shareholders of the publicly listed company.”
Commenting on the combined company release, Smith said: “Our model at MyCart is unique, from customer acquisition to speed of delivery and everything in-between. This led to five years of explosive growth, which was great, but also requires established support and resources to avoid certain pitfalls. We believe that Norbrook will give us the right balance of growth support and risk management. With MyPac, we can now continue growing aggressively through continued innovations for consumers, but benefiting from the governance and resources of being a publicly listed platform run by proven business leaders.”
Gonzales noted: “For years, we struggled to be everything to everyone, from premium customers wanting a personalised experience all the way to their doorstep, to value-driven customers that just want to collect their packages as fast as possible at the lowest cost.”
He added: “ With both brands under one umbrella, Mailpac can now focus on our core differentiators, and MyCart can do the same. With conservative synergy estimates, Mailpac Group expects the transaction to deliver significant enhancements in revenue and profitability.”