Deutsche Post close to Securicor deal

Deutsche Post is close to acquiring the remaining 50 per cent stake in Securicor’s UK parcels distribution business. The German postal operator is seeking to streamline its express, freight and logistics services under one roof and to close remaining gaps in its pan-European delivery network.

“We are in the final stages of securing a deal – it is imminent,” said a person close to the talks. Deutsche Post is expected to pay up to €300m (£192m) for the 50 per cent it does not already own in Securicor Distribution.

However, Securicor is thought to believe that a deal with Deutsche Post could take longer, as there are several issues that need to be thrashed out before agreement can be reached.

In November 1998, Deutsche Post paid about €360m for its first 50 per cent stake in Securicor’s parcel distribution unit.

The joint venture focuses on overnight delivery in the business-to-business market between continental Europe and the UK and Ireland. In the year to September 30 2002, Securicor’s share of the joint venture generated operating profits before goodwill amortisation and exceptional items of £7.1m, on turnover of £347.5m.

Securicor had put options to sell the remaining 50 per cent to Deutsche Post in 2005.

Through the joint venture, Deutsche Post has access to one of the strongest parcel distribution networks in the UK and Ireland. The cross- border parcel market between the UK and continental Europe is growing at about 15 per cent annually, compared with a5per cent growth rate of the UK’s internal market.

The full acquisition of Securicor’s parcel services is part of the broader strategy of Klaus Zumwinkel, Deutsche Post’s chief executive to integrate Deutsche Post’s express, freight forwarding and logistics activities under the joint roof of DHL, the world’s largest ground and air express service.

Following a €6bn global acquisition spree, Mr Zumwinkel must bring together newly-acquired express activities such as DHL and dozens of smaller parcel services with logistics operations such as Danzas and US-based AEI.

For Securicor, the sale would help it meet its aim of becoming a pure security group.

Separately, Deutsche Post said over the weekend it would buy Casa di Spedizioni Ascoli, an Italian parcel service, on January 15 to strengthen its position in southern Europe. The Milan-based operation generated €80m sales in 2002 and has 400 employees.