Otto Group and Advent International announce Hermes partnership
One of the largest and most experienced private equity investors, Advent International, is taking a 25 per cent stake in Hermes Germany and 75 per cent in Hermes UK pending the approval of the boards and competition regulators, a press release said Monday (August 10, 2020). The Otto Group had announced the partnership during its annual press conference in May. The expansion into the parcel delivery sector should help exploit the potential for growth in this highly competitive and rapidly growing business segment.
Otto Group retains majority in Hermes Germany
The Otto Group is retaining the majority of shares in Hermes Germany and its core German market. The company is relinquishing its majority shareholding in Hermes UK while retaining representation in major strategic decisions. The operational management of both companies will remain with their respective teams. Co-operation with Hermes' business partners and clients will remain unaffected.
High quality delivery
Kay Schiebur, Member of the Executive Board, Services Otto Group, commented: "Thanks not least to massive investments in a powerful and flexible network, Hermes has shown in recent months that retailers and end customers can rely on unrestricted high quality delivery, even in an unprecedented environment such as the COVID-19 pandemic." The parcel service has shown how fundamental it is to have functioning competition on the market and the resulting choice for customers. He added: "We are pleased that we are now investing in even better delivery quality and additional services in partnership with Advent and can thus continue on our successful path."
Growth amid pandemic
Hermes has continously strengthened its market position in both Britain and Germany and transported more than 760 million parcels in the 2019/20 fiscal year. At present, both businesses are recording high volume growth against the backdrop of the COVID-19 pandemic. Hermes plans to hire more staff in expectation of continued growth in the parcel delivery sector,
Hermes' operations in other countries
Advent's stake in Hermes Germany includes the other Hermes Germany Group companies i.e. BorderGuru, Liefery and Hermes Germany's share in the ParcelLock joint venture. The partnership will not affect Hermes' activities in Russia, France and Austria, the holding company Hermes Europe or the companies not involved in parcel delivery, namely Hermes Fulfilment, Hermes Einrichtungs Service, Girard Agediss, Hansecontrol and Otto International.
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