DHL Global Mail to sell UK business mail unit to Secured Mail

DHL Global Mail is set to sell part of its business in the UK to British independent bulk mail company Secured Mail for an undisclosed amount. Warrington-based Secured Mail said today that buying DHL Global Mail UK’s Downstream Access division will see it gaining an additional hub for its network, in Crick, Northamptonshire, along with 55 staff who will all transfer.

The company said the deal, which is subject to the contract being finalised, will see it confirmed as a “major player” in the UK postal sector, although the firm could not disclose the share of the market it will have.

Secured Mail, which was founded in 2006 and had a £48m annual turnover last year, said taking on DHL Global Mail UK’s business brought clients including retailers Debenhams and Mothercare and the banking firm National Australia Group.

The acquisition will see Secured Mail gaining volumes including transactional mail, advertising mail and direct marketing, packets and parcels.

Mark Bigley, the company’s managing director, told Post&Parcel today that the acquired business was “absolutely complementary” to Secured Mail’s existing network and services, and that he was expecting a “very smooth transition and integration” of the two businesses, with no need for job losses.

“There will be absolute continuity of service for all DHL’s Downstream Access customers,” he said.

“What we’ve done is acquired a great business. We’ve acquired a hub in the central area of the UK, we’ve acquired a tremendous bunch of people and a very loyal customer base.”

Downstream Access

DHL Global Mail has not yet responded to Post&Parcel concerning its side of the deal, or its withdrawal from the UK Downstream Access market. The company that has its UK head office in Egham, Surrey, has been cutting back its UK presence after a recent review of the business, and last week revealed it is closing down its publishing sector business.

Downstream Access is the term given to the activity of collecting and transporting pre-sorted mail from businesses before entering the mail into the Royal Mail network for last mile delivery. The market was created by the deregulation of the UK postal market.

Bigley said while the UK postal market was in decline as a whole, the wholesale market has been growing “for many years, and continues to grow”.

He said: “We think that more people will be looking for more cost-effective postal solutions, they’ll be looking for more innovative solutions to what they currently get, and this acquisition just strengthens the overall proposition for customers within a very dynamic and innovative marketplace.”

Secured Mail currently has a hub facility in Dartford, south-east of London, and around 150 employees serving clients including e-commerce giant Amazon, energy utility Centrica and water utility Southern Water.

Earlier this month, the company was ranked second in the Sunday Times Fast Track list of the 100 fastest-growing private sector companies in the UK., which stated that the company collects 400m letters nationwide each year and currently enjoys annual revenue growth of 233%.