KarstadtQuelle sells parts of logistics business to Deutsche Post

Troubled German retail giant KarstadtQuelle said on Monday it had agreed to sell parts of its logistics operations to the semi-privatised German postal service Deutsche Post in a deal which sources said was worth more than one billion euros (1.3 billion dollars).

A spokesman for KarstadtQuelle declined to comment on the price.

The activities, which KarstadtQuelle did not specify, would be sold to Deutsche Post’s express and logistics unit DHL, the retailer said in a statement.

The transaction still had to be approved by the regulatory authorities, but was expected to take effect from April 1.

The divestment represented a “further important step in KarstadtQuelle’s reorganisation programme,” the statement said.

Deutsche Post already applied to the Federal Cartel Office last month for permission to buy KarstadtQuelle’s logistics activities.

Logistics form a core area of business for Deutsche Post, which has made a number of acquisitions in recent years.

KarstadtQuelle has embarked on a massive restructuring in order to pull itself out of the red, including the loss of 5,700 jobs from a total workforce of 100,000.

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Deutsche Post says KarstadtQuelle logistics ops has 500 mln eur annual volume
AFX International ProFeed 01-24-2005
ESSEN, Germany (AFX) – Deutsche Post AG said the logistics operations it is buying from KarstadtQuelle AG have an annual volume of around 500 mln eur per year.

It said it has signed a contract with Kartstadt to handle the retailers’ department store and mail order logistics needs. The 10-year contract is has a total volume of around 5 bln, Deutsche Post said.

Some 3,650 Karstadt staff will become Deutsche Post employees through the acquisition, it added.

Karstadt said earlier today it is disposing of parts of its logistics operations to Deutsche Post’s express and logistics subsidiary DHL, with effect from April 1 this year.

The two companies have agreed on this transaction, subject to the approval of their supervisory bodies and the relevant authorities, Karstadt said.

The transaction represents a further important step in the KarstadtQuelle group’s implementation of its reorganisation programme, the company said.

No financial details were disclosed, but sources said Deutsche Post will pay more than 1 bln eur for the logistics operations.

mb/tc