Deutsche Post to acquire a 50 percent stake in Securicor Distribution

Deutsche Post to acquire a 50 percent stake in Securicor Distribution
2nd November 1998

Another move to build up a pan-European parcel network.

Deutsche Post has agreed to acquire a 50 percent stake in Securicor Distribution, the “Distribution Division” of the British company Securicor. The main business sector of Securicor Distribution is in the field of delivery of business-to-business express and parcel items in Great Britain and Ireland, where the company is a market leader in this segment under the name of Securicor Omega Express. With this joint venture, Deutsche Post has managed to get on with expanding its European parcel network, thus meeting the expectations of its international customers, by joining forces with a strong partner in Great Britain and Ireland. This means it will be able to provide the accustomed quality of transport and delivery services in Great Britain and Ireland, too.

Dr. Klaus Zumwinkel, Chairman of the Board of Management of Deutsche Post, commented on the joint venture by saying “the strategy of Deutsche Post is to develop an efficient European network which will enable us to provide first-class quality of service that meets top international standards in pan-European freight traffic. By forging joint ventures, engaging in cooperation with and acquiring participating interests in leading national parcel and express service providers we are covering Europe’s main markets. Securicor Omega Express will be an important part of this network in future”.

The Securicor Group was established in 1935. Today, Securicor mainly operates in three fields: security, telecommunications, and parcel distribution. In 1996/97 the total turnover generated by the Group (around 56,000 employees) amounts to around £ 1.35 billion (DM 3.74 billion).

Securicor Distribution was set up in 1965 and today mainly operates in the business sectors parcels and express, contract logistics, warehousing and making out of dispatch orders. The new joint venture employs around 12,500 people and runs 7,000 vehicles. In 1997, the turnover generated totalled around £ 562 million (DM 1,556 million).

Securicor Omega Express is focused on the attractive business-to-business parcels segment. In future the company will take over and deliver these parcels from Deutsche Post’s European network which have been addressed to customers in Great Britain and Ireland. In return, Deutsche Post will receive the parcels from Securicor Omega Express which are destined for the European continent and will distribute and deliver them to the respective countries.

Deutsche Post’s cooperation with Parcelforce in the private customer transportation area will not be affected by the joint venture.

Dr. Klaus Zumwinkel: “With this joint venture two strong service providers will be joining forces in an attractive international market and will be offering their customers even better logistics services from one source for all of Europe.

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