Deutsche Post DHL Group (DPDHL) has signed an agreement to acquire up to 100% of ocean freight forwarding company J.F. Hillebrand Group AG and its subsidiaries.
Hillebrand will be bought for €1.5 billion ($1.75 billion).
As explained, the strategic combination of Hillebrand with DHL’s Global Forwarding, Freight (DHL) division will strengthen the group’s position in the dynamic ocean freight forwarding market.
The ocean freight forwarding firm focuses on beverages, non-hazardous bulk liquids and uses flexitanks and ISO tank containers. DHL expects to benefit from Hillebrand’s know-how and customer experience in bulk liquids and other adjacent special care commodities, to leverage the positive underlying growth pattern of these products.
Hillebrand also offers a wide range of value-added services, which will now be available to DHL customers. These services include customer-facing tools with advanced IT systems, as well as end-to-end service offers in the fast-growing bulk liquids segments, including own flexitank productions being the industry benchmark in this sector.
“The acquisition of Hillebrand is a unique opportunity for Deutsche Post DHL Group to add high quality ocean freight services with strong margin characteristics and high cash flow generation. We expect this transaction to be earnings and cash flow accretive from day one,” Melanie Kreis , CFO Deutsche Post DHL Group, said.
Hillebrand will in turn benefit from DHL Global Forwarding, Freight’s network in over 190 countries and global forwarding expertise in air, ocean and road freight to ensure strong development opportunities for the business.
The transaction is subject to merger control clearance in certain jurisdictions, inter alia the EU and the US. Such clearances are expected in the coming months.
DPDHL intends to fund the acquisition with available cash.