UK Mail acquired by Deutsche Post in £243 million takeover

Fri, 07 Oct 2016 | BUSINESS SALE

UK Mail has agreed to a £243 million takeover from Deutsche Post. The deal is set to boost competition in the postal market sector, with Royal Mail coming under increasing pressure.

UK Mail, founded in 1971 by Peter Kane, has been struggling for a number of months. Problems at its sorting facility caused the company to issue two profit warnings last year as well as the departure of chief executive Guy Buswell.

The deal, which saw UK Mail’s share price soar by 43 per cent, was welcomed by Mr Kane, who said that the offer from Deutsche Post would give UK Mail shareholders a significant premium on their shares. In a statement, he said: “The board believes that UK Mail will benefit significantly from becoming part of Deutsche Post DHL, and will be better positioned to continue to develop our parcels and mail businesses with the benefit of Deutsche Post DHL’s greater financial and operational resources.

”There will be significant synergies including additional volumes flowing through our network from Deutsche Post DHL’s global operations.”

With the acquisition, one of Europe’s largest parcel company will grab a significant foothold in the UK. As the traditional letter is replaced by parcels from online shopping, Royal Mail is facing a serious threat to its once dominant position.

Discussing the acquisition, Jürgen Gerdes, a board member at Deutsche Post DHL, said: ““With this acquisition, we will further extend our network and have a strong foothold in Europe’s three largest e-commerce markets – the UK, Germany and France – which account for more than 60% of online retail in the continent.”

Click here to see more businesses for sale.


Share this article



Latest Businesses for Sale

Accountancy Practice
Norfolk, UK Wide

The practice has been around for over two decades with virtually zero DB transfer exposure and a focus on financial planning. The Practice represents one of the cleanest Businesses you’re likely to see anywhere on the marketplace at this time. Number...

Asking Price: £750,000
Turnover: £300,000

Manufacturer of Niche Agricultural & Engineering Products
West Midlands, UK

This well-established manufacturer for sale has been trading for over 185 years and has built up a considerable niche business for agricultural and engineering products for a cross-section of industry sectors. The business to be sold is ideal for acq...

Asking Price: Offers Invited
Turnover: £1,700,000

Wealth Management Firm
Hampshire, UK Wide

Highly Profitable Wealth Management Firm. Great Staff Base Who Will Remain and Continue to Manage the Clients. Established: 25 to 30 years. Number of staff: 5 to 10. Offers invited.

Asking Price: £4,500,000
Turnover: £1,400,000


View more businesses for sale

News Search

Latest News

 
21
 
Feb
 

Street food catering firm seeks buyer after entering administration | ADMINISTRATION

Shrewsbury-based catering company MPM Catering has entered a...

 
20
 
Feb
 

Heycar acquires HonestJohn.co.uk following administration | BUSINESS SALE

Online used car service Heycar has purchased the independent...

 
19
 
Feb
 

On-demand laundry app snapped up after administration | BUSINESS SALE

Laundrapp, an on-demand laundry service which was touted as ...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources