DHL completes acquisition of Airborne's ground operations
DHL, the world's leading express and logistics company, has announced the completion of its acquisition of Airborne Inc's ground operations for approximately $1.05 billion in cash, bringing increased competition to the U.S. express delivery market. The transaction was announced on March 25, 2003.
The company also announced that Uwe Doerken, CEO of DHL Worldwide and a member of DHL parent company Deutsche Post World Net's Executive Board, has appointed Carl Donaway, formerly Chairman and CEO of Airborne, as Executive Chairman of DHL Holdings Inc. John Fellows will remain CEO of DHL Holdings Inc.
"DHL has long been a market leader in international express delivery and logistics, as well as outbound express delivery services in the U.S.," said Uwe Doerken. "The combined networks of DHL and Airborne gives us a much stronger presence in key U.S. domestic markets that will enable us to serve our customers even better. Now more customers can benefit from DHL's unrivaled express and logistics services, which help international shippers do business more quickly, efficiently and competitively."
"This is a defining moment for the U.S. express delivery market," said Carl Donaway. "Our combined company is a far stronger player in expedited door-to-door delivery, bringing much-needed competition to a market that up until now has been dominated by a long-held duopoly. By combining DHL's unmatched global network and resources with Airborne's outstanding selection of domestic shipping options, we are creating an industry-leading value proposition that will benefit a broad range of express delivery and logistics customers — and bring new options to the small to mid-sized U.S. marketplace."
"Over the next 12 to 36 months, our management team will be working diligently to integrate our operations as we deliver on the promise of this compelling combination," said John Fellows. "By building on the best practices of both organizations, we can establish a more efficient, fully integrated and robust infrastructure and an even stronger platform for future growth."
The Company also announced that it plans to integrate the businesses of Airborne with its existing businesses in the United States. The plan involves reducing the operating activities of both Airborne and DHL companies in the U.S.
As part of this plan, management will reduce headcount in both companies. Similarly, the company plans to eliminate duplicate operating and administrative facilities of the two companies as part of this restructuring plan. This decision is in line with the company's strategy to streamline its ground operations in the United States. The company also plans to consolidate its corporate headquarters in the U.S. over the next 1-3 years.
In this connection, as management finalizes the detailed integration plan, DHL anticipates that it will record a purchase accounting restructuring charge against goodwill for the identified actions relative to the Airborne businesses.
The combined company will operate under the DHL brand. Through Airborne, DHL Express and DHL Danzas Air&Ocean, the global leader in freight forwarding and logistics solutions, DHL offers the world's broadest range of express delivery and logistics products, from courier and express services to heavy tonnage forwarding and tailor made logistics solutions.
From DPWN website, 15.8.03
Airborne Purchase Complete
More competition and wider product range for customers – Strategic milestone for Deutsche Post World Net
The purchase of US company Airborne through Deutsche Post subsidiary DHL, which was announced in March this year, was on Friday successfully completed.
At Thursday’s shareholders’ meeting 98.7 percent of shareholders approved the takeover.
“The strategic purchase of Airborne will help us become a significant player in the US, the largest express market in the world, as well as the world’s number one logistics group,” said Dr Klaus Zumwinkel, Chairman of Deutsche Post World Net’s Board of Management.
“The main beneficiaries of increased competition in the US market which is dominated by UPS and FedEx will be the customers,” commented Uwe Doerken, DHL’s CEO. “The combination of Airborne’s strong domestic network and DHL’s international network, their expertise in the cross-border business and an extended product offering will open up a whole new range of possibilities for customers in the US and worldwide.”
Having given their approval to the takeover, existing Airborne shareholders will receive € 19.88 (US$ 21.25) in cash per share (total amount: € 980 million). In addition, for each share previously held in Airborne they will receive one ABX Air share, thereby becoming the future shareholders of the spun-off airline. A service level agreement (ACMI) will be signed between the new company and ABX Air.
The joint company will trade under the name DHL. With more than 40,000 staff and subcontractors it will serve customers in the US and operate services from the US to more than 220 countries around the world. The integration phase is expected to end within the next one to three years and will involve a review of human resources and operational locations.
© Copyright 2003 Deutsche Post AG / Masthead
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