Advent to acquire 75% stake in Hermes UK
Private equity firm Advent International is to acquire a 75% stake in Hermes UK in what is described as a “business as usual” agreement.
Announced this week, the deal will see German retailer Otto Group sell three quarters of the business to Advent in a deal reportedly worth £900,000.
Otto Group will continue to own 25% of the company whilst the management of Hermes UK will continue to lead it as an independent operation, with business continuing as normal for employees, suppliers and customers.
In a statement issued by Advent the company said: “The transaction will facilitate further investment by Hermes in technology and infrastructure and support the future growth of the business in the rapidly growing parcel delivery sector.”
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The deal follows Hermes' call last month for 10,500 ‘parcel people’ to meet the surge in huge demand created by home shopping during lockdown, and continuing growth in the sector. Hermes UK is predicting parcel volumes will reach record levels during the Black Friday and Christmas period.
Martijn de Lange, chief executive at Hermes UK, said: “This is fantastic news for Hermes UK as we continue our upwards trajectory in the fast-growing and capital-hungry home delivery sector.
“The investment will enable us to remain independent and be agile and responsive to future market requirements. It will help to expedite the development of our capacity and technology, supporting the introduction of new innovative products and services that will greatly benefit our retail clients and their customers.”
In addition to the 75% shareholding in Hermes UK, Advent will also acquire a 25% stake in Hermes Germany, which includes other Hermes Germany Group companies including BorderGuru and a share in the ParcelLock joint venture.
The transaction with Otto Group is subject to approval by the boards and relevant antitrust authorities.
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