Hays disposes of German non-core business
Hays’ disposal strategy continues with the sale of its German automotive spare parts operations to a specially created new company, Night Plus.
Thomas Mencwel, who previously headed Hays’ multi-user parts business, established the new operation.
With 14 cross-docking centres throughout Germany, and annual revenues of around €34 million, the network provides a range of time-sensitive products to automotive manufacturers, delivering auto spares to dealerships and workshops in-night or before the start of the next working day.
Earlier in the year, a strategic review by Hays’ management resulted in the decision to focus on the company’s recruitment division, and the subsequent sale of non-core businesses.
The disposal of its logistics unit, the second largest division in the Group, has taken longer than expected, and it is believed that a number of trade and financial bidders have dropped out.
It appears that the company is now prepared to sell off certain components of its logistics business. In addition to its spare parts network in Germany, Hays recently sold a distribution centre in the Netherlands to investment company Ashtenne Holdings for £8 million (€11.7 million).
Although this strategy will generate a certain amount of revenue, some analysts believe it will erode the total amount that the company will get for the whole logistics division, which was originally estimated at between £250 million and £350 million (€350 million – €490 million).
However if potential buyers want to purchase only certain parts of the business, perhaps Hays has decided to dispose of those parts that aren’t required prior to the final sale.
