From USO to ESO?
There has, over the last few weeks, more discussion on the USO – should we have one? what should be in and out? and who should it impact.
Read MoreTag: SMS
Postal firm DX confident that doubling its size is in the bag
DX, the postal business bought last year by private equity firm Candover Partners, is confident it can double in size over the next few years as deregulation of the postal industry gathers pace.
Speaking on a visit to Edinburgh to open the firm’s newly refurbished postal facility in Rutland Square, chief executive James Greenbury admitted that DX was “still relatively small” compared to Royal Mail.
DX, which has more than 27,000 private and public sector customers, stands to benefit if Royal Mail staff press ahead with the first national postal strike for 11 years.
Earlier this month, some 69,000 members of the Communication Workers Union – 77 per cent of those voting – backed a strike over pay and cost efficiency plans.
As well as legal practices, DX services surveyors, accountants, estate agents and other professional services firms. Its new Rutland Square facility can count all of the major Scottish law firms among its users.
Although DX is focused primarily on next-day business mail services, its clients have access to a special delivery product that covers both business and residential addresses.
Candover paid almost GBP 350m last July to secure DX. The venture capital heavyweight also bought Secure Mail Services, which delivers cheque books and credit cards to consumers, for an undisclosed sum.
Read MoreCandover buys DX to merge it with SMS
DX Services, the mail business, is to be bought by Candover Partners, the private equity firm, for Pounds 348.7m.
The offer of 415p a share in cash represents a 26 per cent premium to the closing share price of 330 1/2p on July 3, the day before the company announced it had received an approach from an unidentified party.
Candover’s acquisition represents a direct challenge to the Royal Mail Group as the private equity firm plans to merge DX with Secure Mail Services, a postal company that delivers time-sensitive documents.
Read MoreCandover moves into mail with pounds 349m DX deal
Order must be accepted by 06 August 2006. Minimum 12 month contract. Subject 1o BT line and availability. Further conditions apply.
Candover, the private equity company, yesterday took the fight to the ubiquitous Royal Mail after agreeing to pay pounds 349m for DX Services, the private post group spun out of the former conglomerate Hays 18 months ago.
Royal Mail still has a market share of more than 96 per cent in the UK, despite attempts to open up the market to competition.
Paul Kehoe, the chief executive of DX, said: “There has been 350 years’ worth of inertia in this market and the red post boxes continue to dominate.”
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