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Deutsche Post DHL Group further strengthens European cross-border parcel network with UK Mail acquisition

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Deutsche Post DHL Group further strengthens European cross-border parcel network with UK Mail acquisition

Germany | October 01, 2016 | 09:47 AM / 41832

LOCO News Team | LOCO

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Bonn, 28 September 2016 Deutsche Post DHL Group, the world’s leading mail and logistics group, has reached an agreement on the terms of a recommended cash offer to acquire the entire issued and to be issued ordinary share capital of UK Mail Group plc (UK Mail), one of the largest integrated mail and parcel operators within the UK. The acquisition will allow Deutsche Post DHL Group to bring its expertise in e-commerce and parcel delivery together with UK Mail’s existing customer base and network, to drive substantial shareholder value. In particular, the acquisition of UK Mail:

Strengthens the European market position of DHL Parcel, adding a commercial and operational presence, including pick-up and delivery capabilities, in the UK, Europe’s largest e-commerce market
Enhances Deutsche Post DHL Group and UK Mail’s customer value propositions
Strengthens UK Mail’s UK market position
Delivers significant synergy benefits
Juergen Gerdes, Deutsche Post DHL Group Board Member, said: “The on-going expansion of our parcel network in Europe is driven by increasing demand within our e-commerce customer base for cross-border deliveries. Deutsche Post DHL Group, as the leader in the German parcel market, has already established a strong position in a number of European countries. UK Mail is a well-run business and an established provider of quality delivery services in the UK and offers a complementary fit with our integrated offering. With this acquisition, we will further extend our network and have a strong foothold in Europe’s three largest e-commerce markets, the UK, Germany and France, which account for over 60% of online retail in the continent.”

Deutsche Post DHL Group’s cash offer of GBP 4.40 per share values the entire issued and to be issued ordinary share capital of UK Mail at GBP 242.7 million, which represents a premium of 43.1 per cent over the closing price per UK Mail share on 27 September, 2016. The Directors of UK Mail intend to make a unanimous recommendation that company shareholders accept the offer.

DHL Parcel is the leading parcel delivery company in Germany, Europe’s largest parcel market by volume, and has expanded its cross-border network since 2014 to cover 18 European countries. The company has pioneered a number of innovative solutions, from same-day and time-specific delivery to automated Packstations and parcel shops that maximize delivery convenience. UK Mail, founded in 1971 by the current Chairman Peter Kane, has a network of over 50 sites in the UK, including an automated national hub in Ryton which can process up to 20,000 parcels per hour. UK Mail offers business customers a unique integrated service with a full range of time-sensitive and secure delivery options for parcels and letters.


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