Hermes expands to Italy

Hermes Logistics Group has acquired a stake in Italian parcels and logistics company Swiss Post Porta a Porta, having taken over 30 pct of the share capital from majority shareholder Swiss Post International (SPI) to further expand its international presence and strengthen its position as Europe’s key logistics service provider in delivery to private households.

In return, SPI which does not wish to invest in domestic networks, is able to focus on the cross-border letter market, and will also become the preferred sales partner of HLG for international B2C services in European markets.

With a central hub in Milan and 63 depots throughout the country run by sub-contractors, one of Porta a Porta’s specialist areas is the nationwide distribution of items to both business and private customers. In 2006, the company delivered some 3.5 items to private customers, giving it a 7 pct share of the market. “No other private service provider in Italy has such a well-established B2C network as Porta a Porta,” says Jean-Pierre Streich Head of Swiss Post International.

The company also already has a good portfolio of business customers with whom it has established long-term partnerships, such as Vorwerk, universal mail order company Bon Prix, and TV shopping channel Media Shopping.

All partners benefit from this cooperation: HLG brings to the partnership its tried and tested knowledge of building up standardized B2C networks, while Porta a Porta has specific knowledge of the Italian market. HLG would also consider similar partnerships in other countries if the right partners were found.

HLG has successfully offered parcel services on the Austrian market since July 2007, and thanks to close cooperation with affiliated companies Parcelnet in the United Kingdom and Mondial Relay in France, it also has access to first-rate logistics infrastructures in these two countries.

“There is an enormous demand for high-quality B2C delivery services in Italy, which offers us excellent growth opportunities. Moreover, Swiss Post Porta a Porta is already Italy’s quality provider on the parcels market, the perfect prerequisite for us to expand its existing market share and to welcome more and more customers by becoming the logical alternative to Poste italiane,” says Hanjo Schneider, Chairman of the Board of Management at Hermes Logistics Group.

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