Deutsche Post DHL Group (DPDHL) has signed an agreement to acquire J.F. Hillebrand Group AG and its subsidiaries at an equity value of around €1.5 billion (US$1.76 billion).
The transaction is still subject to merger control clearance in certain jurisdictions, inter alia the European Union and the United States with the clearances being expected in the coming months.
According to the announcement, DPDHL intends to fund the acquisition with available cash.
Hillebrand is a global service provider specialised in ocean freight forwarding, transport and logistics of beverages, non-hazardous bulk liquids and other products that require special care. The German company generated revenue of approximately €1.4 billion (US$1.64 billion) in the last twelve months, will ship around 500,000TEU in 2021, and has more than 2,700 employees worldwide.
"With the growing maturity of our freight forwarding business, this bolt-on acquisition of Hillebrand is highly complementary to our existing portfolio. In line with our Group Strategy, we strengthen our core logistics business and deliver profitable long-term growth", commented Frank Appel, CEO of Deutsche Post DHL Group.
"After concentrating on improving the business operationally, we are now able to direct our core business towards sustainably higher margins by broadening our reach and service offering in specialised segments", noted Tim Scharwath, CEO of DHL Global Forwarding, Freight.
According to a statement, DHL will benefit from Hillebrand's know-how and customer experience in bulk liquids and other adjacent special care commodities, to leverage the positive underlying growth pattern of these products.
Hillebrand will, in turn, benefit from DHL Global Forwarding, Freight's large scale network in over 190 countries and global forwarding expertise in air, ocean and road freight to ensure strong development opportunities for the business, and its employees.
For DHL, the deal aims to include additional services within the comprehensive range of ocean freight products DHL already offers its customers globally, while it is expected, this transaction will generate healthy margins in a fast-growing business.
"We expect this transaction to be earnings and cash flow accretive from day one", confirmed Melanie Kreis, Chief Financial Officer of Deutsche Post DHL Group.
