DHL sells parcel delivery business
Home Delivery Network (HDN) has announced a deal to buy DHL's UK parcel operations as it looks to capitalise on the boom in deliveries from internet shopping.
The deal, which was for an undisclosed sum, will create a business with more than £600 million in annual sales. Merseyside-based HDN said it would retain all 4,700 staff employed by DHL Domestic.
DHL Domestic, which is DHL's UK parcel arm largely specialising in deliveries between businesses, will also transfer over its 71 service centres, a headquarters in Heathrow and five hubs in Hatfield, Manchester, Bristol, Leeds and the Midlands.
Business-to-business delivery firms have been branching out into the consumer delivery sector as the recession hits the business market hard. Royal Mail has also been expanding its parcel business in an attempt to focus away from the declining letters market.
DHL said it decided to offload the business, which accounts for around 9% of its UK workforce, to exit the "highly competitive" UK parcel market, adding it would instead focus on its international parcel business and remaining UK brands. HDN chief executive Brian Gaunt said the acquisition "provides greater security to people within both organisations".
It will initially retain the DHL Domestic brand after the deal completes, which is due by the end of the first quarter.
HDN boasts a client list including many major UK retailers, such as Argos Tesco, Sainsbury's and Marks & Spencer.
DHL Domestic largely operates in the business-to-business market, although it also makes consumer deliveries. It was bought by DHL five years ago from Securicor.