In a landmark deal, Leeds-based Evri is set to be acquired by Apollo Global Management for £2.7 billion. This acquisition follows Apollo’s previously declined offer to take over THG plc.
Evri has experienced rapid growth over the past five years, delivering 730 million parcels annually and serving 12 million customers weekly in the UK. The company’s client roster includes notable names like John Lewis, Shein, and HelloFresh.
Evri’s Impressive Growth
Evri, based in Leeds, is set to be acquired by Apollo Global Management for £2.7 billion. Last year, Apollo made an offer to takeover THG plc, but it was declined by THG’s board.
Evri has seen rapid growth over the past five years. The company delivers 730 million parcels and serves 12 million customers weekly in the UK. Among its clients are well-known brands like John Lewis, Shein, and HelloFresh.
Investments and Upgrades
Advent International, a global private equity investor, is selling Evri to Apollo. Advent acquired Evri in 2020 and has since invested nearly £200 million in the parcel delivery company.
These investments include a significant technology upgrade and the construction of a £60 million automated distribution hub in Barnsley. This hub is the largest of its kind in Europe.
Since being acquired by Advent, Evri has tripled in size. This growth reflects the transformative changes in the company’s operations and market strategy.
Statements from Leadership
Martijn de Lange, CEO of Evri, shared his thoughts on the acquisition. He said, “The last five years have seen transformative change in our proposition which has allowed us to take full advantage of the positive trends in our markets.”
De Lange also expressed confidence in the future partnership with Apollo. “We are very excited to be partnering with Apollo and optimistic for what the future holds,” he added.
Apollo has not yet issued a public statement about the acquisition. However, reports indicate it faced competition from JD.com, DHL, and Platinum Equity.
Evri’s Ownership History
Evri was originally bought by Advent from Otto, a German mail order company. This acquisition marked the beginning of significant growth and development for Evri.
Kay Schiebur, a member of Otto Group’s Executive Board, expressed gratitude towards Advent. He said, “We would like to thank Advent for the excellent cooperation and are pleased that Evri’s strong foundation created under our joint stewardship sets the basis for a successful future.”
Under Advent’s ownership, Evri received substantial investments that propelled its rapid expansion. This foundation has positioned Evri for continued success under Apollo’s management.
Competition for Acquisition
The news of Apollo’s acquisition of Evri has generated significant interest. Reports suggest that Apollo fought off bids from other major companies.
JD.com, DHL, and Platinum Equity were among the competitors in the bidding process. These companies recognised the value and potential of acquiring Evri, reflecting the competitiveness of the deal.
Apollo’s successful bid underscores its strategic interest in expanding its portfolio in the parcel delivery and logistics sector. Evri’s impressive growth and market presence were key factors in attracting these bids.
Future Prospects for Evri
The acquisition by Apollo opens up new opportunities for Evri. With Apollo’s support, Evri can further expand its operations and enhance its service offerings.
Evri’s CEO, Martijn de Lange, is optimistic about the future. He believes the partnership with Apollo will drive further growth and innovation.
As the market for parcel delivery services continues to grow, Evri is well-positioned to capitalise on emerging trends. The company’s strong foundation and recent investments provide a solid platform for future success.
Market Impact
The acquisition is significant for the parcel delivery market in the UK. Evri’s sale to Apollo will likely influence competitive dynamics in the industry.
With Apollo’s resources and strategic direction, Evri could potentially set new standards in the market. This could lead to improved services and increased competition among parcel delivery companies.
The acquisition of Evri by Apollo Global Management represents a significant development in the UK parcel delivery market. With Apollo’s resources, Evri is well-positioned to continue its impressive growth and innovation.
The competitive bidding process highlighted Evri’s valuable market position. This acquisition sets the stage for enhanced services and increased competition in the sector.