Deutsche Post Global Mail Buys SmartMail, QuikPak

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Deutsche Post Global Mail USA, Herndon, VA, a subsidiary of Deutsche Post World Net, said yesterday that it has reached agreements to acquire the U.S. mail service providers SmartMail Services and QuikPak Inc.

Financial terms were undisclosed.

Deutsche Post is a leader in international mail services with direct connections in more than 200 countries. It also offers DHL@home (previously called Airborne@home), a workshare product developed by Airborne in cooperation with the U.S. Postal Service in 1999 that encompasses the domestic delivery of parcels, press products and bound printed matter in the business-to-consumer sector. The DHL network is used for pickup and transport, while the USPS provides the last-mile delivery.

SmartMail, Atlanta, is a leading provider of transport and sorting services for flat mail. It offers domestic large-volume mailers economical surface transport as well as express delivery services for flat mail, catalogs and small packets.

QuikPak, Lafayette, IN, offers mail processing and fulfillment programs domestically designed to speed delivery while reducing postage costs. It is the nation's largest provider of fulfillment services for catalogs as well as a major mailer of brochures and other promotional materials.

The new Deutsche Post Global Mail USA -- comprising Global Mail, SmartMail, QuikPak and the services offered by DHL@home -- will employ 1,850 people in the USA and will generate revenue of $600 million. With locations in 15 states, it will be the largest private U.S. provider in this sector.

"QuikPak has partnered with DHL for several years, leveraging DHL@Home's extensive network of delivery capabilities to enable us to achieve the best in-home delivery of catalogs and mail, " says QuikPak CEO Michael A. Berman. "Our services complement each other perfectly."

An integration management team, led by Klaus Knappik, chairman of Deutsche Post Global Mail, will determine a unified structure of the company over the coming months. Vice chairman Bill Boesch, Berman and SmartMail CEO James Martell will continue to be responsible for the management of their respective companies during the integration.

The workshare program was introduced in 1976 and forms the basis of the cooperation between private companies and the USPS, whereby access to the USPS network is granted to third parties. The workshare partners do not deliver the items themselves to the addressees, but rather pick them up from the customers and feed them into the respective USPS sorting centers. From there, the items are delivered by USPS carriers to the addressees.

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