Deutsche Post Continues Expansion
The announced purchase price was approximately $368 million.
For Deutsche Post, which bought a 22.5% stake in U.S.-based DHL last March, acquiring equity in Securicor is a major step toward developing a pan-European express parcel business.
"Deutsche Post’s strategy is to build a leading pan-European parcels delivery network by establishing partnerships or making equity investments in major domestic operations in each of the principal European markets," said Klaus Zumwinkel, chairman of the managment board of Deutsche Post. "The Securicor Distribution Division will form an integral part of this network."
While Britain’s domestic parcels market is growing at about 5% per year, the European international parcels business is set to grow at three times that rate, according to Roger Wiggs, Securicor’s chief executive.
"This joint venture represents a key step for Securicor in the development of its distribution activities," Mr. Wiggs said. "The joint venture will be well positioned to become one of the leading players in the U.K.-Europe crossborder parcels market."
Last year, Deutsche Post, Europe’s largest postal service, reported profits of $450 million on revenue of $16 billion. Securicor posted profits of $40 million on revenue of $925 million.