TNT sells freight management to GEODIS
TNT N.V. today announced that it has signed a Sale and Purchase Agreement (SPA) to sell its freight management business unit to French logistics service provider GEODIS SA. The transaction has an enterprise value of euro 460 million, cash and debt free. TNT estimates cash proceeds of above euro 400 million. The transaction will bring TNT a book gain of well over euro 150 million and is expected to close in the first quarter of 2007 subject to regulatory clearances. Final amounts will be calculated on the basis of completion accounts.
Peter Bakker, CEO of TNT stated: “We bought the business in 2004 primarily based on a rationale related to Logistics. As part of our Focus on Networks strategy we studied the relationship to our express and mail delivery networks and decided that selling the freight management business is the best way forward and will allow TNT to focus on the many growth opportunities that our network businesses offer. I congratulate GEODIS with the acquisition of this excellent business and wish the management and employees continued success.”
Pierre Blayau, Chairman & CEO of the GEODIS group stated: “We are very excited by the acquisition of TNT Freight Management, which is a valuable company and a perfect fit with GEODIS business model. I am pleased to confirm that Jeff Hoogesteger will remain CEO of TNT Freight Management from Headquarters maintained in the Netherlands”.
With revenues last year of euro3.6 billion, GEODIS is an international logistics provider with 23,800 employees in a network covering 120 countries.
