J.F. Hillebrand Group

History

2021: Deutsche Post bought Hillebrand for $1.8 billion

In mid-August 2021, Deutsche Post acquired the J.F. Hillebrand Group logistics company for $1.8 billion, which strengthened its position in the profitable beverage transportation market. This is the largest Deutsche Post deal since the acquisition in 2005 of the British freight carrier Exel for $7 billion.

The German company Hillebrand was founded 175 years ago as a carrier of wine barrels, and now also transports beer, alcohol, dairy products, olive oil and bulk liquids. Hillebrand's integration will strengthen Post's maritime transportation division, which is struggling to cope with the rise in DHL parcel express delivery due to increased demand for online purchases during the pandemic. Deutsche Post is actively competing with the Chinese company Sinotrans for second place in the marine freight market after the Swiss Kuehne + Nagel International AG.

Deutsche Post acquired Hillebrand for $1.8 billion

The chief executive officer of Deutsche Post, Frank Appel, said that the company's financial stability, which remained despite the pandemic crisis, allowed it to expand the emerging freight forwarding business through the acquisition of the company, "successfully supplementing the Deutsche Post portfolio of services."

Hillebrand employs 2,700 people, and the company's annual revenue is 1.4 billion euros. Deutsche Post reported that the special-purpose liquid transportation sector in which Hillebrand operates is generally more profitable than the freight forwarding industry as a whole. As part of the deal, Deutsche Post pledged to invest its funds in Hillebrand's main logistics enterprises in accordance with the adopted growth strategy until 2025. Deutsche Post decided to pay for the acquisition of Hillebrand in cash. This transaction is expected to immediately increase the profit and cash flow of the company.^[1]

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