BY Fraser Tennant
Strengthening its position in the ocean freight forwarding market, global logistics company Deutsche Post DHL Group (DPDHL) is to acquire freight forwarder J.F. Hillebrand Group AG.
Under the terms of the agreement, DPDHL will acquire up to 100 percent of Hillebrand and its subsidiaries at an equity value of around €1.5bn. DPDHL intends to fund the acquisition with available cash.
“With the growing maturity of our freight forwarding business, this bolt-on acquisition of Hillebrand is highly complementary to our existing portfolio,” said Frank Appel, chief executive of DPDHL. “In line with our group strategy, we strengthen our core logistics business and deliver profitable long-term growth. Using our financial strength, we are able to pursue quality investments while reinforcing our unchanged commitment to deliver on investor return expectations.”
A global service provider specialising in ocean freight forwarding, transport and logistics of beverages, non-hazardous bulk liquids and other products that require special care, Hillebrand generated revenue of around €1.4bn in the last 12 months and has more than 2700 employees worldwide.
Focusing on core logistics is a key element of DPDHL’s ‘Strategy 2025’, with priority for selected inorganic growth given to specific, strategically relevant activities.
As well as boosting DPDHL’s position in the market, Hillebrand will benefit from DPDHL’s global forwarding, freight division’s large-scale network in over 190 countries and global forwarding expertise in air, ocean and road freight to ensure strong development opportunities for the business and its employees.
“The two companies are a perfect match, and we are pleased to announce our agreement to unite and form a future together,” said Cees van Gent, chief executive and chairman of Hillebrand. “I am proud of what the Hillebrand teams in true collaboration with our loyal customers and vendors have built over our 177-year history and we now look forward to joining forces with DPDHL.”
The transaction is subject to merger control clearance in certain jurisdictions, including the European Union (EU) and the US.
Tim Scharwath, chief executive of DPDHL’s global forwarding, freight division, concluded: “Hillebrand is an exceptional opportunity and an excellent fit with our strategy.”
News: Deutsche Post to acquire sea freight forwarder Hillebrand for $1.8 billion