U.S. group tipped to buy Hays logistics unit
Platinum Equity, a U.S. private investor group, emerged over the weekend as the favorite to buy the logistics business of Hays, a leading British business services company.
Platinum has not commented on market reports that it is willing to buy the whole of Hays logistics operations, one of the largest in the United Kingdom valued at up to $350 million, unlike rival trade and equity bidders which are only interested in parts of the business.
Hays is due to unveil its annual results Tuesday but is not expected to announce a deal for the logistics unit which it put up for sale in March.
Los Angeles-based Platinum has mainly focused on the technology and telecom sectors but has also invested in transport, acquiring Data2Logistics, a provider of freight processing data, in 2002.
Hays’ logistics unit made an operating profit of $28.3 million in the six months to Dec. 31, 2002, down from $36.1 million in the year-earlier period on sales up 3 percent at $717 million. The sale of the division has been complicated by a downturn in the European logistics market and change of control clauses on some key contracts allowing customers to renegotiate rates.
Hays is also seeking buyers for its mail and express divisions.
