Deutsche Post to acquire 75 pct of Williams Lea for about 370 mln eur
Deutsche Post AG said it plans to acquire 75 pct of UK-based Williams Lea for 370 mln eur in order to expand its worldwide logistics operations.
Williams Lea issued a statement on its Website saying it 'welcomes Deutsche Post as new principal investor,' and that it will continue to operate as an independent entity.
We are delighted with the outcome of our recent negotiations and Deutsche Post World Nets decision to become our principal investor,' chief executive Tim Griffiths said in the statement.
'In recent years, we have built a leading position in the Corporate Information Solutions market and Deutsche Post World Net has pledged full support for our plans to accelerate this growth. With their backing, we are confident that we will be able to satisfy even larger and more complex business process outsourcing requirements for our clients, on a truly global scale.
Williams Lea had annual revenues of 438 mln stg in the fiscal year through Sept 30, 2005.
Its clients include O2, BMW AG and AXA.
Deutsche Post World Net takes majority stake in document and mail services provider Williams Lea
Business Wire 02-13-2006
BONN, Germany–(BUSINESS WIRE)–Feb. 13, 2006–Deutsche Post World Net
— Emergence of a leading full-service provider in the US mail market
— Excellent platform for growth in the world's largest mail market
Deutsche Post World Net will take a majority stake in Williams Lea, a business process outsourcing (BPO) provider specializing in document management and mail services. Williams Lea is a leader in the field of value-added document and mail-related services. As an international services provider, Williams Lea has significantly strengthened its US presence over the last few years through organic and acquisitive growth, with offices in many US cities including New York, Chicago, Los Angeles and San Francisco.
By joining forces with Williams Lea, Deutsche Post's international mail related business in the US will grow considerably. As the largest private provider of mail services in the US, the company will now become the leading full-service supplier in the US mail market and thereby create an excellent platform for continued growth in mail logistics, the new market of the future.
"US customers increasingly demand intelligent one-stop-shop solutions that serve their individual needs. With the acquisition of a majority stake in Williams Lea, Deutsche Post World Net creates a very strong platform for its US business to take advantage of this enormous demand and growth potential in the world's largest mail market," said Klaus Knappik, Chairman of Deutsche Post World Net's MAIL International Divisional Board.
Tim Griffiths, Chief Executive of Williams Lea, commented, "We are delighted with the outcome of our recent negotiations and Deutsche Post World Net's decision to become our new principal investor. Their business is wholly complementary to ours and we are eager to draw on their extensive business experience as a truly global organization. We see considerable potential to leverage Deutsche Post's world class mail and logistics capability in adding more value to Williams Lea's customer proposition."
Williams Lea's customers include major international corporations in the areas of legal and professional services, investment banking, financial services, telecommunications and retail, as well as companies from the automotive and pharmaceutical industries. It employs more than 3,300 employees in the US alone and achieved revenues of over $ 210 million in fiscal year 2005. Post completion, the company's experienced management team will remain in place and retain a significant equity stake.
The company, founded in 1820, has a long tradition of service excellence and is headquartered in London. It also has operations in Europe and Asia Pacific and employs over 6,500 employees worldwide.
Deutsche Post World Net through DHL Global Mail is already positioned as a worldwide leader in the areas of domestic as well as international mail services and together with Williams Lea, will become the leading full-range provider in international mail logistics. Together both companies offer its global customers high quality mail solutions along the entire value chain: from direct-marketing consulting and printing, to sorting and franking, all the way to international transport and delivery.
The acquisition of Williams Lea is subject, especially, to regulatory approval and is expected to close in March 2006.
Deutsche Post World Net is the world's leading logistics group.
Its integrated Deutsche Post, DHL and Postbank companies offer tailored, customer-focused solutions for the management and transport of goods, information and payments through a global network combined with local expertise. Deutsche Post World Net is also the leading provider of Dialog Marketing services, with a unique portfolio of efficient outsourcing and system solutions for the mail business. In 2004 the Group generated revenues of EUR 52 bn. With currently some 500,000 employees in more than 220 countries and territories, Deutsche Post World Net is one of the largest employers worldwide.
For more information, visit www.dpwn.com.
Williams Lea is the leading global provider of Corporate Information Solutions.
Williams Lea transforms the way organizations communicate and exchange their printed and electronic information. Its customized solutions are delivered by a unique group of people who evaluate, re-engineer and manage processes for greater efficiency. The result is that Williams Lea helps its clients to be more successful. It improves their profitability, enhances their customer experience and reduces their risk.
Current clients include some of the world's leading organizations in the legal, financial services, investment banking, professional services, retail, telecommunications, automotive, energy and utilities, pharmaceutical and corporate sectors. . Amongst others, Williams Lea's client base encompasses Orrick, BMW, Prudential and Merrill Lynch.
For more information, visit www.williamslea.com.
CONTACT: Press inquiries can be directed to: Deutsche Post World Net Uwe Bensien Tel.: +49 (0)228/182 99 44 E-Mail: [email protected] or Williams Lea press inquiries can be directed to: Southard Communications Evan A. Ard Tel: +1 212.777.2220, ext. 15 Email: [email protected]
KEYWORD: NEW YORK GERMANY INTERNATIONAL EUROPE
INDUSTRY KEYWORD: HARDWARE SOFTWARE ADVERTISING/MARKETING TELECOMMUNICATIONS NETWORKING INTERNET E-COMMERCE MARKETING AGREEMENTS
SOURCE: Deutsche Post World Net
Deutsche Post in control of Williams Lea after 3i sells 38% stake for Pounds 110m GENERAL FINANCIAL
Financial Times UK, London Ed3, Sec. COMPANIES UK, p 21 02-14-2006
By By PETER SMITH
3i, the private equity group, has sold its 38 per cent stake in Williams Lea to Deutsche Post for Pounds 110m, in a deal valuing the London-based document services business at about Pounds 450m, including debt.
Deutsche Post will increase its stake to more than 51 per cent after receiving irrevocable acceptances from former Williams Lea employees and legacy investors owning a further 13 per cent of the shares.
The founding family, with 30 per cent worth about Pounds 100m, and management and current employees, owning 20 per cent, also have the right to sell down their holdings though they are expected to retain significant minority stakes.
Williams Lea, which was founded in 1820 and moved to its current purpose-built head office in Worship Street, Moorgate in the 1890s, has been on the acquisition trail in recent years.
The company now operates from more than 400 locations across the US, Europe and Asia Pacific. It employs more than 6,500 people. Tim Griffiths, chief executive, said annualised sales were now running at a little more than Pounds 500m and that the business would be expected to continue to make further acquisitions with the support of its new principal investor.
"Deutsche Post have struck a very innovative deal," Mr Griffiths said. "They have bought out 3i but allowed family and management to stay in, allowed us to retain an independent board and a dividend for minority shareholders.
"Deutsche Post were also very attractive because they are intent on helping us build this business."
The deal follows Deutsche Post's Pounds 3.8bn purchase of Exel, the logistics company, last year.
Williams Lea provides document management services, including design, printing and distribution for organisations including Aviva and Prudential, the insurers; GlaxoSmithKline and Pfizer, the pharmaceutical companies; law firms and investment banks. Contracts vary from Pounds 5m to Pounds 30m a year in size and typically last from five to 12 years.
3i has been an investor since the 1960s but increased its stake from 14 to 38 per cent in 2004 to provide Williams Lea with growth capital for acquisitions and to secure longer term contracts. Williams Lea's US presence was strengthened in 2004 when it bought out joint venture partner Bowne Business Solutions, followed shortly after by Uniscribe.
3i generated a 3.4 times multiple return on its investment, valuing Williams Lea's equity at close to Pounds 335m. The sale is expected to be completed next month. 3i shares rose 2p to 904 1/2p.
