Deutsche Post World Net today completed the acquisition of U.K. logistics company Exel plc, becoming the global No. 1 in air freight, ocean freight and contract logistics. Just one month after Exel’s shareholders welcomed the offer, the company’s equity capital was transferred in its entirety to Deutsche Post World Net. The combination of the two companies creates a group with some 500,000 people and about 55 billion euros in annual sales.
“This acquisition marks a historic step for Deutsche Post World Net. By bringing together these two powerful, high-quality organizations, we are creating the largest logistics company in the world. Our Group will set the future pace in the forwarding and supply chain industries, enabling us to serve even better the global needs of our customers,” said Deutsche Post Chief Executive Officer Klaus Zumwinkel. “The transaction has been carried out in a very positive and constructive atmosphere. Within very short time, our two management teams have developed a deep understanding and mutual trust. Our top priority now is to combine DHL Logistics and Exel in a rapid and efficient manner.”
The future structure of Deutsche Post World Net’s enlarged logistics division has already been confirmed and top management positions filled. Exel Chief Executive Officer John Allan will run the combined division, which will employ around 150,000 people, be headquartered in Bracknell, near London, and operate under the DHL brand.
John Allan said, “Strategically, this acquisition is a good fit as both organizations were looking to increase their geographical footprint to meet the challenges of globalization and growth in outsourcing. Now we will be able to provide customers with an even wider range of products and value-added services managed by a talented group of people. I am looking forward to leading the new division and working with new colleagues.”
Deutsche Post World Net paid 900 pence in cash and 0.25427 Deutsche Post shares per Exel share. The transaction thus values Exel at 1237 pence (18.35 euros) per share, or 3.8 billion pounds (5.6 billion euros) as of closing on December 13. The new Deutsche Post shares, which represent less than seven percent of the equity capital, will start trading on the Frankfurt stock exchange today. Exel’s stock listing on the London exchange was cancelled as of December 13.
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