Deutsche Post DHL Group Acquires J.F. Hillebrand Group

The Deutsche Post DHL Group (“DPDHL“) has signed an agreement to acquire up to 100 percent of J.F. Hillebrand Group AG (“Hillebrand“) and its subsidiaries for approximately 1.5 billion euros. Hillebrand is a global service provider specializing in sea freight forwarding, transport, and logistics of beverages, non-hazardous liquid bulk goods, and other products that require special care during transport. The company employs more than 2,700 people worldwide. Hillebrand generated approximately 1.4 billion euros in revenue over the last twelve months and expects to transport around 500,000 TEU in 2021.

(Bonn/Mainz) The strategic merger of Hillebrand with the DHL division Global Forwarding, Freight (“DHL“) will strengthen the group’s position in the dynamic sea freight forwarding market. The focus on the core logistics business is a key element of the group’s 2025 strategy, with priority given to selected inorganic growth in specific, strategically relevant activities.

“Given the strength we have achieved in our forwarding business, the acquisition of Hillebrand represents an excellent addition to our existing portfolio. In line with our corporate strategy, we are strengthening our core logistics business and ensuring long-term profitable growth,” says Frank Appel, CEO of Deutsche Post DHL Group. “With our financial strength, we can make high-quality investments while reaffirming our unwavering commitment to meeting investor return expectations.”

“Having focused on operational improvements, we are now able to align our core business towards sustainably higher margins by expanding our reach and service offerings in specialized segments,” explains Tim Scharwath, CEO of DHL Global Forwarding, Freight. “In this context, the acquisition of Hillebrand offers crucial opportunities and fits perfectly into our strategy. We look forward to working with the entire Hillebrand team to further develop their first-class business on our platform.”

Growth Prospects in Beverage and Food Logistics

Hillebrand is a recognized specialist in sea freight forwarding with a focus on beverages and non-hazardous liquid bulk goods transported using innovative flexitanks and ISO tank containers. DHL will benefit from Hillebrand’s expertise and customer experience in liquid bulk goods and similar specialty products to leverage the positive growth prospects of these products. Additionally, the company offers a wide range of value-added services that are now also available to DHL customers, ensuring consistently excellent service quality and an exceptional customer experience. These services include industry-leading customer management tools with top-notch IT systems, as well as complete solutions in the rapidly growing segments for liquid bulk goods, including its own flexitank production, which sets standards in this sector.

Hillebrand, in turn, will benefit from the global network of DHL Global Forwarding, Freight in more than 190 countries and its worldwide expertise as a freight forwarder for air freight, sea freight, and land transport to ensure excellent development opportunities for the company and its employees.

Combining Forces in Sea Freight

“Hillebrand is a leading sea freight forwarder specializing in transport, logistics, and supply chain management of beverages, non-hazardous liquid bulk goods, and other products that require special care during transport. Deutsche Post DHL Group is a significant global logistics company – the two companies fit perfectly together. We are pleased to announce today that our two companies will merge and shape the future together. I am proud of what the Hillebrand teams have built in true collaboration with our loyal customers and suppliers over our 177-year history, and we now look forward to combining our strengths with Deutsche Post DHL Group,” says Cees van Gent, CEO and Chairman of the Board of J.F. Hillebrand Group.

For DHL, the business offers an attractive proposition with complementary services within the comprehensive range of sea freight products that DHL already offers its customers worldwide. The transaction is expected to generate attractive margins in a rapidly growing business.

Regulatory Approval Still Required

“The acquisition of Hillebrand is a unique opportunity for Deutsche Post DHL Group to expand its business with high-quality sea freight services that have strong margins and high cash flow. We expect this transaction to have a positive impact on earnings and cash flow from day one,” confirms Melanie Kreis, CFO of Deutsche Post DHL Group.

The merger is subject to approval by the relevant antitrust authorities in certain countries, including the EU and the USA. These approvals are expected in the coming months. DPDHL intends to finance the acquisition with available liquid funds.

Photo: © Hillebrand