Deutsche Post DHL Group to acquire ocean freight forwarding expert J.F. Hillebrand Group
Deutsche Post DHL Group ("DPDHL") has signed an agreement to acquire up to 100% of J.F. Hillebrand Group AG ("Hillebrand") and its subsidiaries at an equity value of around €1.5 billion, according to the company's release.
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 ("DHL") 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.
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.
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 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.