(Adds detail, shares)
March 15 (Reuters) - Poland’s InPost aims to more double the size of its operations with a 565 million euro ($674 million) cash deal to buy French delivery platform Mondial Relay as it looks to expand its international presence amid a booming e-commerce market.
InPost has offered to buy Mondial Relay, which operates about 16,000 pick-up drop-off (PUDO) points in places such as supermarkets, flower shops or laundries, from Germany’s Otto Group, in what would be its first significant international deal.
“As we outlined during our recent IPO, international expansion is a key element of InPost’s growth strategy and Mondial Relay would give us an immediate footprint in one of Europe’s largest e-commerce markets,” CEO Rafal Brzoska said.
The company’s shares were up 5% as of 0905 GMT.
InPost, which owns over 12,000 parcel lockers in Poland and Britain, said the proposed acquisition would almost double its revenue to 4.5 billion zlotys and immediately add to its earnings.
It said it sees about 100-150 million euros of incremental EBITDA enhancements over the medium term.
The parcel business is widely used in Poland by sellers on online commerce platform Allegro. Brzoska estimated Polish e-commerce market could grow more than 20% this year.
The company plans to finance the deal, expected to close by the end of the second quarter, with debt through a committed bridge facility.
Mondial Relay, which had revenue of 437 million euros last year, operates the second-largest PUDO network in France and also has a smaller presence in the Benelux countries and Iberia.
France is the EU’s third largest e-commerce market, InPost said.
InPost reported preliminary 2020 results for its main operating unit, with revenue doubling to 2.5 billion zlotys and operating EBITDA up 184% to 994 million zlotys.
$1 = 0.8379 euros Reporting by Anna Pruchnicka, additional reporting by Anna Koper; Editing by Kim Coghill