Deutsche Post DHL Group is acquiring ocean freight forwarder Hillebrand for €1.5 billion as part of its strategy to strengthen its core logistics operations.
Photo: Deutsche Post DHL Group
Photo: Deutsche Post DHL Group
The strategic combination of Hillebrand and DHL's Global Forwarding, Freight division will strengthen the Group's position in the ocean freight market. Focusing on core logistics is a key element of the Group's Strategy 2025.
The move comes as shortages of freight capacity - both ocean and air - have pushed up shipping costs globally, with the coronavirus pandemic also extending port waiting times due to labour shortages and traffic disruptions.
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Deutsche Post DHL Group, one of the world’s biggest logistics groups, said it expected the fast-growing business would contribute to earnings from day one.
"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", said Frank Appel, CEO Deutsche Post DHL Group.
Hillebrand is widely regarded as a market expert in ocean freight forwarding, with a focus on beverages, non-hazardous bulk liquids, using innovative flexi tanks and ISO tank containers.
The company also offers a wide range of value-added services, which will now be available to DHL customers. 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 production.
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Hillebrand will in turn benefit from DHL'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.
"Our 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 collaboration with our customers and vendors, have built over our 177-year history and we now look forward to joining forces with Deutsche Post DHL Group," said Cees van Gent, CEO and Chairman of the Executive Board at J.F. Hillebrand Group.
The transaction is subject to merger control clearance in the EU and US, which are expected in the coming months. Deutsche Post DHL Group intends to fund the acquisition with available cash.
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