SingPost to sell two of its US e-commerce businesses

SingPost said its non-US business units will not be affected by the divestment. ST PHOTO: DESMOND WEE

SINGAPORE - Singapore Post (SingPost) will sell its United States e-commerce businesses - Jagged Peak and TradeGlobal - after a strategic review, it announced on Wednesday night (April 3).

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

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

Jagged Peak provides software and services that help businesses to 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 like Calvin Klein, Hugo Boss, Rockport, Versace and Marc Jacobs Beauty.

TradeGlobal operates in the fashion, beauty and lifestyle sectors.

Its 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 said in a statement that it believes its competitive advantages are in Asia Pacific, which provides attractive 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 Asia Pacific."

Analysts surveyed by Bloomberg in March 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 in 2015.

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

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