DHL sold its domestic parcel service in the United Kingdom to the Home Delivery Network, the company said Tuesday, extending DHL’s move toward international and logistics services.
HDN, which specializes in business-to-consumer parcel delivery, will take on all employees and facilities of the business by the end of the first quarter, DHL said, and the company will keep using the DHL brand for a short time as part of a preferred supplier relationship.
DHL said the sale will allow the company to focus more closely on international express services and its freight business.
The sale also follows DHL’s withdrawal a year ago from domestic delivery within the United States when the company, owned by Germany’s Deutsche Post DHL, said its express unit would concentrate on international service.
DHL did not put a price tag on the sale. But HDN said the DHL business, with 4,700 employees, five hubs and 71 service centers across the United Kingdom, will create a combined operation with some $967 million worth of annual business.
“It's a transformational deal for us,” HDN Chairman Gary Monk told Reuters. “It will give us a more efficient business, particularly in competing with Royal Mail.”
DHL said the sale is limited to the domestic parcel service, which it also calls Day Definite Domestic.
“We are confident that this move will help us improve the overall quality of our international services while at the same time enhancing domestic parcel services for UK customers,” said Ken Allen, CEO of DHL Express. “The agreement allows us to concentrate our resources on further growing the profitable express businesses.”
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