As part of the planned merger with FedEx, international delivery company TNT is to sell its overnight distribution subsidiary TNTE Innight to a private equity firm. The private equity firm Special Situations Venture Partners III (SSVP) is to operate the business as a standalone entity that will retain its existing customers.
In a statement, TNT said that the sale is “motivated by TNT’s wish to concentrate resources on strengthening its core express delivery activities”.
TNTE Innight is a business that provides night time distribution services in Europe to a number of companies in the automotive, agriculture, and engineering machinery sectors. It manages its own distribution network that is distinct from the main business of TNT Express. It employs around 1300 people across 40 facilities in northern and central Europe.
The parent company and TNTE Innight have a few shared customers, in the engineering machinery, automotive and agriculture sectors. TNT Express will retain these customers once under the FedEx umbrella.
The new parent company, SSVP’s current portfolio includes seven companies with annual worldwide revenues of €1.5bn.
Once the sale is completed, TNTE Innight will be rebranded and will operate as a standalone business. The sale won’t affect the terms and conditions under which TNTE Innight carries out its business with existing customers and suppliers.
TNT is streamlining and divesting non core businesses as part of its likely merger with FedEx. Now that regulators in China have approved the deal it is likely to go ahead within the next two weeks when the real business of conjoining the two companies can take place.