International logistics companies supplier Deutsche Submit DHL Group (DPDHL) mentioned this week it has inked an settlement to accumulate Mainz, Germany-based international ocean freight forwarding companies supplier J.F. Hillebrand Group and its associated subsidiaries for roughly $1.5 billion (EUR).
Established in 1844, J.F. Hillebrand is a world service supplier, specializing in ocean freight forwarding, transport, and logistics for drinks, non-hazardous, bulk liquids, and different merchandise requiring particular care. DHL mentioned that over the past 12 months, J.F. Hillebrand generated income of round $1.4 billion (EUR), will ship roughly 500,00 TEU (Twenty-Foot Equal Items) in 2021, and has greater than 2,700 international staff. DHL mentioned that this transaction is topic to merger management clearance in sure jurisdictions, inter alia the EU and the U.S., with clearances anticipated within the coming months. DPDHL intends to fund the acquisition with accessible money.
DPDHL added that this marks the corporate’s largest acquisition going again to 2005, when it acquired international air freight, ocean freight and contract logistics companies supplier Exel, which was subsequently renamed as DHL Provide Chain. And it added that the strategic mixture of J.F. Hillebrand with DHLs International Forwarding, Freight division will increase its dynamic ocean freight forwarding presence, explaining {that a} give attention to core logistics is a giant part of its Group Technique 2025 efforts.
“With the rising maturity of our freight forwarding enterprise, this bolt-on acquisition of Hillebrand is very complementary to our current portfolio,” mentioned Frank Appel, CEO Deutsche Submit DHL Group, in an announcement “According to our Group Technique, we strengthen our core logistics enterprise and ship worthwhile long-term progress. Utilizing our monetary energy, we’re in a position to pursue high quality investments whereas reinforcing our unchanged dedication to ship on investor return expectations.”
Tim Scharwath, CEO, DHL International Forwarding, instructed LM there have been numerous drivers that factored into this acquisition.
“Whereas we’re unable to offer any particulars of the negotiations with Hillebrand, we will verify that the expansion and robust efficiency of our DHL International Forwarding lately has prompted us to overview bolt-on acquisition alternatives that would additional strengthen our market place,” he mentioned. “Hillenbrand proved a fantastic match and can generate wholesome margins in a fast-growing enterprise. It’s a international service supplier specialised in ocean freight forwarding, transport, logistics and provide chain administration of drinks, non-hazardous bulk liquids and different merchandise that require particular care. It has a very international footprint with a presence in over 90 international locations and greater than 2,700 staff protecting main world commerce lanes. For DHL, it gives enticing publicity to the fast-growing bulk liquid and adjoining commodities markets. Moreover, it’ll add substantial ocean freight volumes to our community, which is able to strengthen our market place and supply scope to optimize procurement.”
As for what bringing J.F. Hillebrand into the fold means for DHL’s clients, Scharwath defined that Hillebrand has an providing that’s extremely complementary to the DHL International Forwarding enterprise.
“It gives specialised capabilities that can improve our portfolio and supply our clients, notably within the alcoholic beverage, meals and bulk liquid segments, with extra value-added companies,” he mentioned. “It’ll present entry to flexitanks (used within the transportation of liquids) out there, which our staff evaluates as the very best high quality out there. Importantly, Hillebrand has a best-in-class IT platform which can be a superb match with our myDHLi suite of instruments and our total digitalization agenda, which is targeted on simplifying and optimizing our clients’ transport processes.”
When requested to establish the largest aggressive benefits of this deal from a DPDHL perspective, Scharwath noticed that the acquisition strengthens its place within the ocean freight market and likewise within the specialised bulk liquid phase and adjoining areas corresponding to liquid meals and prescription drugs, that are on a constructive progress trajectory.
“DHL International Forwarding already has a robust presence in specialised alcohol supply, for instance, with its Gori wine and spirits enterprise,” he mentioned. “Hillebrand will add companies that DHL International Forwarding / Gori right this moment should not have and improve volumes on a number of commerce lanes. The footprints of the businesses are complementary, which is able to open up new alternatives and unlock worth for purchasers of each corporations whereas creating topline synergies from cross-selling.”
Cees van Gent, CEO and Chairman of the Government Board J.F. Hillebrand Group, mentioned in an announcement that the paring of J.F. Hillebrand and DPDHL is an ideal match.
“Hillebrand is a number one ocean freight forwarder specialised in transport, logistics and provide chain administration of drinks, non-hazardous bulk liquids and different merchandise that require particular care,” mentioned van Gent. “Deutsche Submit DHL Group is a significant international logistics firm—the 2 corporations are an ideal match and we’re happy to announce our settlement to unite and type a future collectively. I’m happy with what the Hillebrand groups in true collaboration with our loyal clients and distributors have constructed over our 177-year historical past and we now stay up for becoming a member of forces with Deutsche Submit DHL Group.”
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