Tue, 13 Feb 2024 | BUSINESS SALE
Parcel courier Yodel has been acquired by YDLGP, a consortium of investors, in a deal that creates a new logistics group. The consortium comprises the leadership team of tech logistics platform Shift, which acquired and relaunched Tuffnells last year, and investment bank Solano Partners.
YDLGP has also agreed to acquire the entire issued share capital of Shift, creating an enlarged group serving both the parcels market that Yodel operated in, as well as the larger, irregular dimensions and weights freight handled by Tuffnells.
Despite being one of the UK’s leading delivery firms, operating 50 sites and generating nearly £562 million of turnover last year, Yodel has reportedly struggled in the increasingly competitive parcel courier market, which has boomed amid the rise of online shopping and the COVID-19 pandemic.
Along with rival Evri, Yodel was ranked as the joint worst of the UK’s five leading parcel courier firms last year by Citizens Advice. The company, which is based in Liverpool and was owned by the Barclay family, had been in discussions over an acquisition by the consortium since the middle of 2023 and reportedly faced collapse if a deal could not be struck.
Following the acquisition, Yodel Chief Executive Mike Hancox said: "We’re extremely excited to begin the next chapter of Yodel’s journey, leveraging the scale of our business with the support of new shareholders and the future benefits of the Shift technology platform.”
"Our customers have always been our priority and the transaction announced today allows us to ensure continuity for them, as well as our employees and wider stakeholders."
Shift Chief Executive Jacob Corlett added: "At the heart of this merger is Shift's revolutionary AI-driven technology platform, promising a future where efficiency and automation become the backbone of logistics operations.”
Solano Founding Partner Jacob Corlett commented: "We've seen the Shift team successfully acquire and relaunch the Tuffnells business and believe that forming the enlarged group to house all three creates a disruptive logistics powerhouse."
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