Former managing director makes offer for UK Hays' mail and express arm
The former managing director of Hays’ mail and express arm, Neil Tregarthen is understood to have made an offer for the business of up to £300m.
The DX mail division is the only non-core operation that has not yet been put up for sale in Hays’ restructuring plans, which will transform the group into a specialised recruitment firm.
Mr Tregarthen’s offer comes in ahead of analysts’ valuations, which have priced the business at about £250m. It is understood to be backed by Permira, the private equity group, with debt financing being offered by Royal Bank of Scotland and Credit Agricole Indosuez.
Colin Matthews, who will relinquish his role as chief executive of Hays once its transformation is complete, planned to initiate the sale process for the mail division early next year. Hays declined to comment on any interest it had received in the business at this stage.
Analysts expected the mail business would attract significant interest as it is one of few private postal operators with approval to deliver business mail in the UK.
Last December, Postcomm, the industry regulator, awarded the group the first long-term licence, which allows it to offer specialist services such as pre-8am delivery and mail tracking.
Other possible bidders include Deutsche Post, the German operator and TPG, a Dutch rival. Neither would comment on its interest in the division, but a Hays representative said it had not yet received formal approaches from either group. Mr Tregarthen left the company in March to pursue other interests, after running the mail business for seven years.
Three weeks later, Mr Matthews revealed plans to sell all of Hays’ businesses except its personnel activities. He sold the group’s commercial operations quickly and for a price in excess of expectations. But the group’s logistics division had proved a stumbling block, as challenging market conditions eroded its value.
Last month, Hays sold the majority of its logistics operations to Platinum Equity, a US venture capitalist group, for £102.4m.
