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£250m Parcelnet and Redcats UK courier network deal

The UK's premier courier network Parcelnet has now completed a £250m deal with Redcats UK and plans are underway to integrate the Redcats courier network into Parcelnet creating a 7000 strong courier home delivery network.

The revolution in home shopping is behind the company's plan to create even greater network coverage and a range of enhanced service options to meet the increasing demands of home shopping customers. The deal is a clear demonstration of Otto UK's confidence that Parcelnet will lead the market and continue to develop the highest quality cost effective solutions in this growth market.

The enhanced network will provide a growing range of services for more than 40 of Parcelnets existing clients, including Next directory, Readers Digest, Lakeland Ltd and will significantly enhance the service offering to Otto UK and Redcats UK brands.

A quality delivery and collections service is integral to a successful home shopping proposition and this new network creates even greater capacity for growth. The combined operations give access to greater courier density, which will enable Parcelnet to introduce more delivery options for customers through a network consisting of over 7,000 self employed collection and delivery couriers, 3 additional depots and additional experienced management resource.

Parcelnet's MD Carole Woodhead commented “This is a very exciting time for Parcelnet. We understand the increasing demand for a range of delivery and collection options to support both the growth in remote retail and also the consumer to consumer market which is largely driven by ebay and Amazon marketplace. Our delivery couriers work in a small geographic area and have great local knowledge to ensure that deliveries and collections are made on time. We are the experts, having many years of experience and stability in this sector. We know how important it is to have full national coverage and area density and this deal itself is an important component of our service development plan”.

Parcelnet and Redcats UK have already started planning the integration which will be completed by September 2007. We are working together very positively and we intend to make the ongoing relationship a great success.

Redcats comment: ” We are looking forward to a long and mutually rewarding relationship with Parcelnet that will give improved service levels to all of our customers.” This deal brings many positive benefits to underpin our future home shopping developments.

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