Home Delivery Network buys DHL Domestic

MERSEYSIDE’S Home Delivery Network is to buy DHL’s UK domestic business-to-business and business-to-consumer parcel delivery operations, for an undisclosed sum.

Whiston-based HDN is already the UK’s largest home delivery and collection company.

It said the acquisition of DHL Domestic, which is subject to regulatory clearance, would give the combined businesses annual sales of more than £600m and take its market share to around 17%.

It added that the two businesses would be ideally positioned to exploit the continued growth in a sector that is being driven by the expansion of e-commerce in which there is increasing overlap between B2B and B2C customers.

HDN clients include Amazon, Asos and Tesco Direct and combining with DHL’s home delivery business will mean it also covers pharmaceutical, telecoms and financial service deliveries.

The business, which is owned by the Barclay brothers, said that its increased scale would result in a more efficient business capable of withstanding intensifying competition from traditional B2C and B2B carriers, as well as challenging the Royal Mail more effectively.

Brian Gaunt, HDN chief executive, said: “The growth of e-commerce has transformed our marketplace and with it the demands of our customers. Combining these businesses will enable us to offer our clients a wider variety of propositions and a more efficient service.

“However our immediate focus will be to maintain the exceptionally high standards of service that our customers have come to expect from both businesses.”

DHL Domestic will continue to trade under the DHL Domestic name until the two businesses are fully integrated.

The transaction does not include DHL’s UK International Time Definite and Same Day express services. DHL’s other UK businesses DHL Freight, DHL Global Forwarding, DHL Supply Chain, DHL Global Mail and Williams Lea are unaffected by the move.