Deutsche Post DHL Group set to buy UK Mail
Deutsche Post DHL Group has reached an agreement on the terms of a recommended cash offer to buy UK Mail Group plc, one of the largest integrated mail and parcel operators within the UK In a statement issued today (28 September), Deutsche Post DHL said that the acquisition will bring together its own expertise in e-commerce and parcel delivery together with UK Mail’s existing customer base and network.
In particular, said DPDHL, it will strengthens the European market position of DHL Parcel, by adding a commercial and operational presence, including pick-up and delivery capabilities in the UK.
Juergen Gerdes, Deutsche Post DHL Group Board Member, said: “The on-going expansion of our parcel network in Europe is driven by increasing demand within our e-commerce customer base for cross-border deliveries. Deutsche Post DHL Group, as the leader in the German parcel market, has already established a strong position in a number of European countries.
“UK Mail is a well-run business and an established provider of quality delivery services in the UK and offers a complementary fit with our integrated offering. With this acquisition, we will further extend our network and have a strong foothold in Europe’s three largest e-commerce markets, the UK, Germany and France, which account for over 60% of online retail in the continent.”
Deutsche Post DHL Group’ is making a cash offer of £4.40 per share, which effectively values UK Mail at £242.7m. This represents a premium of 43.1% over yesterday’s (27 September) closing price per UK Mail share.
The Directors of UK Mail intend to make a unanimous recommendation that company shareholders accept the offer.
The DPDHL Group offer is, of course, still conditional on the approval of UK Mail Shareholders, and it will need merger control clearance from the European Commission.
As previously reported, UK Mail has had a challenging period over the past year or so. The company has had to cope with the teething problems of switching over to its new automated delivery hub in Ryton, Coventry, and also a change in senior management, with Guy Buswell stepped down as Chief Executive Officer in November.
UK Mail’s chairman Peter Kane will continue to act as interim chief executive officer of the UK Mail business while the recruitment process for the new Chief Executive Officer continues.