Deutsche Post DHL closed Tuesday on its 1.5 billion euro ($1.65 billion) acquisition of J.F. Hillebrand Group AG, an international ocean logistics provider specializing in wine, beer and distilled spirits, as well as nonalcoholic beverages and bulk liquids.
J.F. Hillebrand, based in Mainz, Germany, is now part of DHL Global Forwarding and will combine with DHL’s beverage logistics unit Gori under the brand name Hillebrand Gori.
“This bolt-on acquisition is a great opportunity for us to add a number of services to our high-quality ocean freight service portfolio, which will strengthen earnings and long-standing client relationships from the start,” said Deutsche Post DHL (DXE: DPW) CEO Frank Appel in a statement.
The deal, agreed to last April, adds niche logistics capabilities for DHL’s global logistics network and is part of the company’s strategy to maintain high-margin growth.
Company officials said they expect a smooth integration because of the companies’ complementary business models.
Hillebrand Gori will be led by Tim Scharwath, who heads the freight division of DHL Global Forwarding. Cees van Gent, Hillebrand’s CEO and chairman since 2017, will leave the company, DHL said.
The $1.6 billion valuation includes the assumption of debt and cash. Under the transaction, Hillebrand’s majority shareholder, Cobepa, will sell its entire stake in Hillebrand, which has grown organically and through acquisitions of its own to have a presence in more than 90 countries. The company has 2,700 employees.
Hillebrand also produces flexitanks, which can be used to store bulk liquids in or out of a container, as part of its shipping service offering. Each flexitank is cargo specific. Hillebrand, for example, developed a “pulse” flexitank for high-density products, such as paint slurry, drilling muds and vegetable oils, that tend to solidify and leave sediment at the bottom of the container while the liquid element remains on top. The tank mixes the transported product back to its original state at destination, allowing it to recover the original consistency before delivery.
Hillebrand recently developed a heater pad for the flexitank to minimize thickening or solidifying of products such as palm oil, tallow, stearin and distilled fatty acids. Heat makes them more fluid and able to be pumped from the tank. Traditional heater pads are made using a combination of metal and rubber tubes. The Hillebrand pad is entirely made from polymers, making it 100% recyclable. It sits underneath the flexitank, inside a container, and maximizes conductive surface area, allowing more heat to be transferred to the contents over a shorter period. By removing the metal parts from the design, the heating can begin at steam rather than gradually building up.
DHL produced a record $8 billion in earnings last year.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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