He will buy Post Master from the Austrian Post and Total Post from a Romanian entrepreneur.
“Our intention is to become the second postal operator in Romania,” he said.
While Posta Romana delivers 300 million letters a year, the two companies acquired deliver 100 million together.
Octavian Radu says he paid several million euros for the two companies, using ‘family money’ not a bank loan.
During the boom days, Octavian Radu had a number of businesses that generated hundreds of millions of euros in revenue. The crisis brought many of them down and he is now trying to start over.
“Both companies are losing money now. We believe that by merging them we will be able to increase the frequency of letter delivery. Anyway, we are positive we can make the new company profitable next year.”
Post Master and Total Post revenue stands at EUR15 million.
Is letter deliver not a dwindling business, considering everybody keeps in touch via the Internet? The two companies deliver mandatory letters (such as bills i.e.), but we hope we can compensate by opening other business segments, Octavian Radu says.
The next step will be entering the small parcel delivery market, which is seeing spectacular rise year by year.
How does the entrepreneur plan to exit this business?
“First we will try to develop it, consolidate the market, grow it and then take it to the stock market.”
Octavian Radu has previously owned another parcel delivery business, TCE Holding, which Cargus bought.
(English version by Loredana Fratila-Cristescu)