Securicor sells 50% of German JV for Euro 284m
Securicor, the private security group, on Monday said it had reached agreement to sell its 50 per cent stake in its UK parcels distribution business to Deutsche Post for Euro 284m ($299m), including assumed debt.
The German postal operator, the other shareholder in the joint venture, will pay Euro 247m cash on completion for the 50 per cent stake it does not already own in Securicor Distribution. Securicor’s share of the venture’s net debt amounted to Euro 37m, bringing the total value of the disposal to Euro 284m.
Securicor announced that about GBP75m ($117.2m) of the proceeds would be returned to shareholders by way of a special dividend of 12p per share.
It added the remaining proceeds would be retained to give Securicor the “financial flexibility to support growth opportunities in its core security business.”
Nick Buckles, Securicor chief executive, said: “This disposal represents another significant step towards Securicor’s goal of becoming a global top three provider of security solutions.”
The transaction will enable Securicor to continue to invest in its security businesses, meeting its aim of becoming a pure security group.
The acquisition by Deutsche Post is part of the broader strategy of Klaus Zumwinkel, Deutsche Post’s chief executive, to integrate the company’s express, freight forwarding and logistics activities under the joint roof of DHL, the world’s largest ground and air express service.
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 a 5 per cent growth rate of the UK’s internal market.
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.
