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Deutsche Post DHL to acquire Hillebrand

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Deutsche Post DHL to acquire Hillebrand. Image: DHL
Deutsche Post DHL to acquire Hillebrand. Image: DHL
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Deutsche Post DHL Group has signed an agreement to acquire up to 100% of J.F. Hillebrand Group AG and its subsidiaries at an equity value of around €1.5 billion. Hillebrand is a global service provider specialized in ocean freight forwarding, transport and logistics of beverages, non-hazardous bulk liquids and other products that require special care. Hillebrand generated revenue of around €1.4 billion in the last twelve months, will ship c.500,000 TEUs in 2021, and has more than 2,700 employees worldwide.

The strategic combination of Hillebrand with DHL’s Global Forwarding, Freight division will strengthen the Group’s position in the dynamic ocean freight forwarding market. Focusing on core logistics is a key element of the Group’s Strategy 2025, with priority for selected inorganic growth given to specific, strategically relevant activities.

“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”, says Frank Appel, CEO Deutsche Post DHL Group. “Using our financial strength, we are able to pursue quality investments while reinforcing our unchanged commitment to deliver on investor return expectations.”

“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 specialized segments”, notes Tim Scharwath, CEO DHL Global Forwarding, Freight. “In this context, Hillebrand is an exceptional opportunity and an excellent fit with our strategy. We are excited to work with the entire Hillebrand team to further develop their best-in-class business on our platform.”

Hillebrand is recognized as a market expert in ocean freight forwarding, with a focus on beverages, non-hazardous bulk liquids, using innovative flexitanks and ISO tank containers. 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. It also offers a wide range of value-added services, which will now be available to DHL customers, driving continuous outstanding service quality and exceptional customer experience. These services include industry-leading customer facing tools with best in class IT systems, as well as end-to-end service offers in the fast-growing bulk liquids segments, including own flexitank productions being the industry benchmark in this sector.

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.

“Hillebrand is a leading ocean freight forwarder specialized in transport, logistics and supply chain management of beverages, non-hazardous bulk liquids and other products that require special care. Deutsche Post DHL Group is a major global logistics company – the two companies are a perfect match and we are pleased to announce our agreement to unite and form a future together. I am proud of what the Hillebrand teams in true collaboration with our loyal customers and vendors have built over our 177-year history and we now look forward to joining forces with Deutsche Post DHL Group”, comments Cees van Gent, CEO and Chairman of the Executive Board J.F. Hillebrand Group.

For DHL, the deal aims to include additional services within the comprehensive range of ocean freight products DHL already offers its customers globally. It is expected, this transaction will generate healthy margins in a fast-growing business.

“The acquisition of Hillebrand is a unique opportunity for Deutsche Post DHL Group to add high quality ocean freight services with strong margin characteristics and high cash flow generation. We expect this transaction to be earnings and cash flow accretive from day one”, confirms Melanie Kreis, CFO Deutsche Post DHL Group.

The transaction is subject to merger control clearance in certain jurisdictions, inter alia the EU and the US. Such clearances are expected in the coming months. DPDHL intends to fund the acquisition with available cash.

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Freight Forwarding

Kuehne+Nagel acquires South African freight forwarder Morgan Cargo

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Kuehne+Nagel acquires South African freight forwarder Morgan Cargo. Image: Kuehne+Nagel
Kuehne+Nagel acquires South African freight forwarder Morgan Cargo. Image: Kuehne+Nagel
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Kuehne+Nagel signed an agreement to acquire Morgan Cargo, a leading South African, UK and Kenyan freight forwarder specialised in the transport and handling of perishable goods. During 2022 the company handled more than 40,000 tonnes of air freight and more than 20,000 TEU of sea freight globally, managed by approximately 450 logistics experts.

The acquisition of Morgan Cargo ideally complements Kuehne+Nagel’s perishables logistics service offering, while improving connectivity for customers to and from South Africa, the UK and Kenya, which includes state-of-the-art cold chain facilities.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, commented: “With Morgan Cargo, we acquire a reliable logistics service provider for the benefit of our customers. Expansion in high-growth markets such as Africa clearly ties into our Roadmap 2026 and reinforces our commitment to the Middle East and Africa Region. We have been active in Africa for many years, but this acquisition is an ideal addition to our regional presence.”

Schalk Bruwer, CEO of Morgan Cargo, added: “We wanted to expand our successful family-owned business and took the opportunity to become part of one of the world leaders in logistics. This new development will provide greater opportunities for our customers in terms of global reach and allow our team to advance their careers beyond the realm that was previously possible. Morgan Cargo is extremely excited to become part of Kuehne+Nagel.”

Closing of the transaction is expected during the third quarter of 2023 and is subject to customary closing conditions, including clearance by the competent merger control authorities.

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Freight Forwarding

Yusen Logistics partners with Toyota Motor to accelerate decarbonization

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Yusen Logistics partners with Toyota Motor to accelerate decarbonization. Image: Yusen Logistics
Yusen Logistics partners with Toyota Motor to accelerate decarbonization. Image: Yusen Logistics
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Following on from last week’s press release Toyota to decarbonise its logistics activities in Europe, Yusen Logistics Europe partners with Toyota Motor Europe in this proactive approach to alternative powertrain development.

Together with VDL Special Vehicles, Yusen Logistics is honored to be part of the team to help accelerate the decarbonization of Toyota’s logistics network with the use of hydrogen fuel cell trucks. Using Toyota’s fuel cell modules VDL will convert an existing vehicle into a zero-emission truck for Yusen Logistics to operate within Toyota Motor Europe’s logistics network.

The innovative technology project is a significant step towards reducing both companies’ overall carbon footprint and aligns with Yusen Logistics’ wider commitment to working together with our partners and communities towards a more sustainable future.

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Freight Forwarding

cargo-partner becomes part of Nippon Express Group

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cargo-partner becomes part of Nippon Express Group. Image: Cargo Partner
cargo-partner becomes part of Nippon Express Group. Image: Cargo Partner
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As cargo-partner is celebrating its 40th anniversary, company owner and founder Stefan Krauter has decided to sell the Austrian global logistics player to Japanese stock-listed Nippon Express Holdings, which is also the parent company of Nippon Express, APC, Franco Vago and others. Having started operations in 1983 with only five employees at Vienna Airport and having developed the company almost completely organically to now 4,000 employees in 40 countries around the globe, Stefan Krauter had already passed on the baton to his management and now has also passed over ownership to his “ideal successor” NX.

After exceeding the billion euro mark in global turnover for the first time in 2020, cargo-partner’s turnover increased by 72%, reaching over 1.8 billion euro in 2021, and further increased to 2.06 billion euro in 2022.

“Leadership by agile founders bears some considerable advantages, but from a certain stage on, highly professional and long-term stable ownership is the bigger asset. It is the founders’ challenge and responsibility to decide about both management and ownership succession at the right time. Not too early to be able to build a stable internal management succession but, for sure, also not too late,” Krauter says. “That is why, together with the Corporate Executive Board, we started evaluating different options for the future of cargo-partner.”

Stefan Krauter continues to explain: “It would also have been a good option for the management and employees to continue going completely alone, but since the ideal new strategic owner was found in NX Group, we were ultimately convinced that this was the right way to go forward. Following the integration policy we have seen from NX Group so far, cargo-partner will remain cargo-partner in regard to both organization and branding – and it will become the strongest cargo-partner ever!”

The deal was signed on May 12, 2023 and will come into effect subject to the usual regulatory (anti-trust and FDI) approvals in an estimated four to seven months along with the subsequent closing.

“Both organizations will benefit from considerable synergies in global office coverage, an expanded service portfolio, strengthened regional, product and IT know-how, increased scale and others. NX Group will benefit from our strong and extensive network in Central and Eastern Europe that complements NX’s existing network in an ideal way, and cargo-partner will jump several leagues in the Intra-Asian and Trans-Pacific trade lanes,” Stefan Krauter states. He adds: “cargo-partner will also continue to work with its current global agents’ network, strive to expand this section of its business and support it in future with its upgraded platform which is presently under development.”

“I will personally continue to support the transition in my new role on the Corporate Supervisory Board and in my advisory function to the Corporate Executive Board. I will be focusing on smart partial integration with the new owners as well as on other matters regarding strategy, M&A and ESG. What an interesting and rewarding challenge at the end of my career!” Krauter says.

The sellers have been advised by J.P. Morgan (financial), ValueAdd (financial), BCG (commercial), Schönherr (legal), and Deloitte (accounting and tax) on the transaction.

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