Global parcel logistics powerhouse DHL announced Wednesday it is taking a significant minority stake in Evri, a large dedicated parcel delivery company in the United Kingdom, and will merge its e-commerce division with the company.
The deal combines Evri’s specialty courier capabilities with the scale of DHL eCommerce’s U.K. and international networks, and brings Evri into the business letter market for the first time. The companies touted their ability to provide small and medium enterprises with a one-stop-shop capability for mail, lightweight, large, high-value, B2B, international delivery and fulfillment services.
The integrated operations will deliver more than 1 billion parcels and over 1 billion business letters annually, according to a joint news release.
E-commerce is one of several sectors DHL Group has targeted for investment because of their high-growth potential. Earlier this year, it gained a stake in Ajex Logistics Services, a parcel carrier in Saudi Arabia.
Evri delivered more than 800 million parcels last year and reaches about 85% of households in the U.K. On average, it serves more than 12 million customers per week. Top clients include Marks & Spencer, John Lewis, Etsy and Vinted. The delivery company recently inked a deal with UK shopping platform Eflorist to deliver flowers.
The company was previously named Hermes when acquired in 2020 by private equity firm Advent International. It relaunched in 2022 as Evri with a heavy investment in infrastructure and technology aimed at improving reliability. The company was acquired last August by New York-based private fund manager Apollo.
Evri has more than 8,000 employees, 25,000 independent couriers and a growing network of fulfillment hubs and depots. The combined operation will include more than 12,000 personnel and 30,000 couriers.
In addition to providing customers more choices for next-day and standard deliveries, Evri’s courier service will be folded into DHL eCommerce’s premium van delivery network for time-sensitive, high-value, and larger B2B and B2C parcels and be rebranded Evri Premium.
DHL eCommerce is a division within DHL that provides parcel delivery, returns and international shipping customized for online merchants.
DHL (DHL.DE) will also expand Evri’s international reach by utilizing DHL eCommerce’s extensive expertise in cross-border parcel shipping and its global network of nearly 150,000 access points. By connecting to DHL’s own eCommerce network in Europe, the United States and certain markets in Asia, Evri shipments will have faster transit times, DHL said.
The combined DHL-Evri group will retain DHL’s UK Mail unit, giving e-commerce businesses more options for sending lighter-weight items. Customers will also benefit from the group’s store and locker network for parcel delivery and collection.
“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,” said Evri CEO Martijn de Lange in the announcement.
Completion of the transaction is contingent on normal regulatory approvals and other closing conditions. Evri will continue to be majority-owned by Apollo-managed funds.
DHL Group generated about $88 billion in revenue last year. Group revenue increased 2.8% in the first quarter to $23.7 billion year over year, with operating profit up 4.5% to $1.6 billion.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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