Deutsche Post DHL Group (DPDHL) announced that it has signed an agreement to acquire up to 100% of J.F. Hillebrand Group AG (“Hillebrand”) and its subsidiaries in a transaction expected to boost its dynamic ocean freight forwarding offering.
In a statement, DHL said the deal has an equity value of around
€1.5 billion (US$1.76 billion).
It said 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. It added that Hillebrand generated revenue of around €1.4 billion (US$1.64 billion) in the last twelve months and has more than 2,700 employees worldwide.
"The strategic combination of Hillebrand with DHL’s Global Forwarding, Freight (DHL) division will strengthen the Group’s position in the dynamic ocean freight forwarding market," the logistics behemoth said, adding that focusing on core logistics is a key element of the its Strategy 2025, with priority for selected inorganic growth given to specific, strategically relevant activities.
Complementary fit
“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.”
Tim Scharwath, CEO DHL Global Forwarding, Freight for his part said "after concentrating on improving the business operationally," DHL is now "able to direct our core business towards sustainably higher margins" — which he said is done by broadening DHL's reach and service offering in specialized segments.
"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," he added.
According to DHL, 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.
It said 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.
Meanwhile, Hillebrand is expected to 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,” said Cees van Gent, CEO and chairman of the Executive Board J.F. Hillebrand Group.
Ocean freight products
DHL said the deal aims to include additional services within the comprehensive range of ocean freight products DHL already offers its customers globally.
"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," said 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 said it intends to fund the acquisition with available cash.
