DHL to acquire UK Mail for GBP242.7m
Deutsche Post DHL Group has signed an agreement to acquire UK Mail Group for around £242.7m.
The company has offered £4.40 per UK Mail share, representing a premium of 43.1% over the closing price of its share on 27 September.
The acquisition will enable DHL to expand its e-commerce and parcel delivery operations in the European market.
Established in 1971, UK Mail provides parcel and mail delivery solutions to its customers in the country and across the globe.
The company has a network of about 50 sites, including an automated national hub in Ryton that can process up to 20,000 parcels per hour.
According to DHL, UK Mail provides business customers with a full range of time-sensitive and secure delivery options for parcels and letters.
Since 2014, DHL Parcel has expanded its cross-border network to cover 18 European countries. It solutions range from same-day and time-specific delivery to automated packstations and parcel shops.
Deutsche Post DHL Group board member Juergen Gerdes 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 chairman Peter Kane said: “We have made good strategic progress in recent years, establishing leading positions in our key markets of parcels and mail, investing in additional capacity in our operations and in IT and product and service innovation.”
Image: Deutsche Post DHL Group’headquarters. Photo: courtesy of Deutsche Post AG.