As part of the transaction, DHL Group will acquire a significant minority stake in Evri.
Evri, one of the UK’s largest dedicated parcel delivery companies, and DHL eCommerce, the e-commerce logistics specialist of DHL Group, have today announced a strategic transaction that will see the merger of DHL eCommerce UK with Evri.
The merged Evri business will deliver over one billion parcels and a further 1 billion business letters annually and is poised to bring significant benefits to consumers and businesses by offering greater choice and cost competitive solutions.
Rebranded Evri Premium, a network of DHL eCommerce, this will remain a dedicated and secure, separate network that will offer fast, time-sensitive deliveries with enhanced shipping security protection for high-value and large items for B2B and B2C parcel services.
The new Group will include an expanded international capability for inbound and outbound parcels to complement Evri’s own international network by making use of DHL eCommerce’s extensive expertise in cross-border parcel shipping and out-of-home network of nearly 150,000 global access points. This includes faster transit times across the world with access to DHL’s own eCommerce network in Europe, the U.S. and selected Asian markets such as India.
Notably, Evri is entering the UK business letter market for the first time, with DHL’s UK Mail retained in the new combined Group and offering a best-in-class mail service. This will also offer e-commerce businesses more options for sending lighter-weight items. In addition, customers will benefit from the Group’s new combined out-of-home shop and locker network parcel delivery and collection which will be the UK’s largest.
Martijn de Lange, CEO of Evri, said: “We are excited that DHL eCommerce UK will merge with Evri to bring together two highly complementary UK businesses – committed to innovation and offering customers and clients the best possible service. By combining Evri’s scale, innovation and DHL eCommerce’s best-in-class premium van network, we are creating the pre-eminent parcel delivery group in the UK. Over the last decade Evri has grown ten-fold in size and this transaction will further expand our access into the European and global e-commerce markets. Since Apollo-managed funds came on board as our owners, they have backed our intent to drive forward and grow to become the UK’s premier parcel delivery business.”
Pablo Ciano, CEO of DHL eCommerce, said: “DHL eCommerce and Evri both stand for top service quality, reliability, and sustainability, which makes this partnership a great fit for our customers. Together, we’ll be able to offer more efficient, far-reaching, and innovative solutions to keep up with the fast-paced ecommerce market. By joining forces in the UK, we’re creating a one-stop shop for all our customers’ parcel needs here and giving them better delivery options from around the world.”
Evri Chairman and Apollo Partner Alex van Hoek, said: “This is a tremendous milestone in Evri’s journey, and we are delighted to welcome a global leader like DHL as a strategic partner and shareholder. By embracing technology and innovation, Evri has grown from strength to strength in a dynamic e-commerce market. With DHL’s complementary expertise and strong network, the business is well positioned to further improve its reliable services and the customer experience.”
Following completion, Martijn de Lange will lead the combined business in the UK, with Stu Hill, currently CEO of DHL eCommerce UK, becoming MD of Evri’s Premium DHL network business. The DHL eCommerce UK executive team will also join the new group.
Evri will continue to be majority owned by Apollo-managed funds.
Completion of the transaction and the outlined partnership are contingent upon closing conditions, including customary regulatory approvals.
The businesses of DHL Express, DHL Supply Chain and DHL Global Forwarding in the UK are unaffected by this transaction and will continue to operate as they do at present.
