"The acquisition makes us the third biggest logistics firm by warehousing capacity in Slovenia," Pošta Slovenije general manager Boris Novak told the press.

The company plans to leverage the new capabilities to expand its parcel delivery and supply chain business, which has so far been constrained by lack of warehousing space.

The Mladinska knjiga logistics division performs logistics services for the publisher as well as third parties and has been profit-making.

It also has a vacant lot adjacent to its main warehouse in Ljubljana that allows for further expansion.

Pošta Slovenije, which is seated in Maribor, will now incorporate a new subsidiary to manage the logistics business. It will take over the Mladinska knjiga assets on 1 October.

Novak said the expansion into logistics was motivated by the continued decline of revenue from traditional postal services, which is expected to contract by 15% by 2017.

The new logistics business is projected to generate revenue to the tune of EUR 5m per year.

Ljubljana-based Mladinska knjiga, on the other hand, plans to focus on its core publishing and bookshop business, according to chairman Peter Tomšič.