- 11 August 2020
- Transport / Logistics Services
The private equity investor Advent International has agreed with the Otto Group to take a 25% stake in Hermes Germany and a 75% stake in Hermes UK. This is now for board and regulatory approval.
According to the Otto Group this will enable the company to expand its interests in the two biggest parcel delivery markets in Europe. It announced its plans to seek such a partnership on the 27th of May.
Both Hermes UK and Hermes Germany have performed strongly in recent years, with the two firms carrying 760 million parcels between them in the financial year 2019/20. The pandemic and spike in demand has significantly added to volumes.
Commenting on the agreement, Kay Schiebur, Member of the Executive Board, Services, Otto Group, said: “The enormous interest shown by potential market partners in an investment reflects the attractiveness of the market segment and Hermes’ excellent market position in the two most important delivery markets in Europe. The partnership with Advent gives both companies further scope for essential investments and thus creates optimal conditions for further growth.
“Advent’s logistics expertise in areas such as locker delivery will also help us to furtherÂ develop our business model”.
Ranjan Sen, Managing Partner and Head of the German Office at Advent International, added: “Advent has significant experience in working successfully with family-owned companies and has previously enjoyed collaborating with the Otto Group with the takeover of the payment service provider Ratepay in 2017. We look forward to deepening this relationship and using our sector expertise to further grow Hermes’ potential in this highly competitive and rapidly growing business segment”.