SingPost selling US e-commerce businesses

SingPost said it believes its competitive advantages are in the Asia-Pacific region, which provides good growth opportunities.
SingPost said it believes its competitive advantages are in the Asia-Pacific region, which provides good growth opportunities. PHOTO: ST FILE

Singapore Post (SingPost) will sell its United States e-commerce businesses - Jagged Peak and TradeGlobal - after a strategic review, it said yesterday.

The company said it is unable to provide further details, including the units' valuation.

Said a SingPost spokesman: "Until the sale is finalised, business will continue as usual for the two companies."

Jagged Peak provides software and services that help businesses improve profitability across multiple channels. It also has various platforms that can be integrated with warehouse or transport management systems.

Some of its clients include lifestyle brands such as Calvin Klein, Hugo Boss, Rockport, Versace and Marc Jacobs Beauty.

TradeGlobal operates in the fashion, beauty and lifestyle sectors. It provides website development, logistics, digital marketing strategies, creative services and order management. Clients include such brands as Cole Haan, Nars Cosmetics, Shiseido and Speedo.

SingPost, in a statement, said it believes its competitive advantages are in the Asia-Pacific region, which provides good growth opportunities. It added that its non-US business units will not be affected by the divestment.

Group chief executive Paul Coutts said: "Arising from the strategic review, we will step up our investment to better serve our home market in Singapore, as well as leverage our competitive advantages in the Asia-Pacific."

Analysts who took part in a Bloomberg poll last month said SingPost was likely to wind down or sell its loss-making US e-commerce business, which they said would bode well for long-term profitability.

The firm bought majority stakes in TradeGlobal and Jagged Peak for about US$184 million (S$249 million) in 2015.

SingPost's third-quarter net profit rose 15.6 per cent to $50.2 million.

A version of this article appeared in the print edition of The Straits Times on April 04, 2019, with the headline 'SingPost selling US e-commerce businesses'. Print Edition | Subscribe