Pitney Bowes expands with Royal Alliances presort unit buy

STAMFORD, Conn. - Pitney Bowes Inc . (NYSE: NYSE:PBI), a global technology company offering commerce solutions in the areas of shipping, mailing, and financial services, with a market capitalization of $1.32 billion and an impressive 79.86% return over the past year according to InvestingPro, has announced the acquisition of the presort operations of Royal Alliances, Inc., a Texas-based shipping and mailing solutions provider. This move, effective as of January 20, aims to enhance Pitney Bowes' presort mail services across the East, Central, and West Regions of the United States.

The transaction is set to increase the annual mail volume of Pitney Bowes Presort Services by over 100 million First-Class™ Mail pieces. While analysts on InvestingPro anticipate a sales decline in the current year, they expect net income growth, suggesting potential operational efficiencies from such strategic moves. Despite the sale, Royal Alliances will maintain its freight brokerage business under the name Direct Logistics.

Debbie Pfeiffer, Executive Vice President and President of Pitney Bowes Presort Services, expressed enthusiasm about integrating Royal Alliances' clients into their network and the future prospects this acquisition presents. The company anticipates that this expansion will foster innovation and efficiency, providing more value to its customers.

Aaron McDaniel, CEO of Royal Alliances, reflected positively on the acquisition, highlighting it as a milestone following more than ten years of growth and innovation. McDaniel also teased the upcoming release of a new logistics software platform set to launch early this year, aimed at enhancing customer experience.

Pitney Bowes will process the additional mail volume at several of its existing locations, including Detroit, Salt Lake City, Orlando, Jacksonville, and Dallas. These centers are part of the over 30 operating centers Pitney Bowes Presort Services has across the country, which collectively handle more than 15 billion pieces of mail annually.

As the largest workshare partner of the USPS®, Pitney Bowes Presort Services assists mailers of various sizes in achieving postage savings and simplifying the mailing process.

The information about this acquisition is based on a press release statement.

In other recent news, Pitney Bowes Inc. has made significant strides in its financial strategy. The company paid down $75 million of its senior secured notes, originally issued by Oaktree Capital Management, as part of its ongoing efforts to reduce its total debt load. This repayment follows a previous $100 million repayment and was made using Pitney Bowes' available cash reserves.

The company also reached an agreement in principle with DRF Logistics LLC, marking a significant step towards DRF's exit from bankruptcy. This agreement is expected to be concluded by the end of 2024 and is seen as a crucial step towards resolving ongoing disputes with DRF's unsecured creditors.

In terms of financial performance, Pitney Bowes reported a slight decrease in third-quarter revenue to $499 million from $503 million year-over-year. However, the company's profitability has improved, with adjusted EBITDA rising 22% to $103 million and adjusted EPS growing to $0.21, up from $0.16. These improvements are attributed to strategic initiatives to reduce costs and optimize cash flow.

Looking forward, the full-year revenue for 2024 is projected to decline at a low-single-digit rate, while EBIT guidance has been raised to $355-$360 million. These are among the recent developments at Pitney Bowes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.