DHL has agreed to take a minority stake in UK parcel carrier Evri, in a deal that will see the German logistics giant merge its British ecommerce division with the Apollo-backed operator, as it looks to strengthen its presence in the UK parcel and ecommerce delivery market.

Evri, acquired by Apollo Global Management from Advent International last year in a deal valued at roughly £2.7bn, will remain majority-owned by the private equity firm. The combined business will deliver over 1bn parcels and a similar number of business letters annually, according to the joint statement.

The partnership also marks Evri’s first entry into the UK business letter market. The new group will employ more than 30,000 couriers and drivers, solidifying its position as a leading competitor to Royal Mail and Amazon, which together dominate parcel volumes in the UK.

“We are delighted to welcome a global leader like DHL as a strategic partner and shareholder,” said Evri chair and Apollo partner Alex van Hoek. “This transaction will further expand our access into the European and global ecommerce markets,” added CEO Martijn de Lange, who will lead the combined business post-merger.

DHL, which did not disclose financial terms, confirmed it retains “multiple options to strengthen ties” with Evri in future. The move comes amid a flurry of consolidation in the UK logistics sector, following InPost’s acquisition of Yodel and Czech investor Daniel Křetínský’s £5.3bn buyout of Royal Mail owner International Distribution Services.

The new group will be led by Evri CEO Martijn de Lange. Stuart Hill, head of DHL eCommerce UK, will serve as managing director of Evri’s premium DHL network business, with the rest of the DHL UK ecommerce team also joining the group.

Source: Financial Times