DHL Express is poised to sell off its heavily loss-making French domestic business to financialinvestor Caravelle.
DHL France announced that it has received a formal offer from the financial investor for itsFrench ‘messagerie’ business, covering domestic express and parcels deliveries, news agency AFPreported. In France, DHL is divided into three separate international express, domestic express andfreight transport companies.
The company said that negotiations with Caravelle were advanced and the deal would bepresented to the management. It hoped the sale “can be concluded in the first quarter of 2010” inthe interests of “certainty and clarity”. DHL confirmed it had held initial talks with severalpotential buyers and described Caravelle as a company with past experience of successful companyturnarounds, such as with parcels operator XP France.
DHL said that the French domestic business, with annual revenues of some €300 million, hadmade losses in recent years and was likely to make a loss of about €70 million this year.
The announcement follows a 24-hour strike by thousands of workers at DHL Express France lastmonth over fears that the loss-making company might be sold off. About 70% of the 3,500employees of the ‘messagerie’ division at more than 68 locations took part. Unions claimed that DHLwas ready to subsidise the sale by up to €200 million.
The French parcel business (‘messagerie’) has undergone several restructurings in an effortto bring it into profit. In early 2008, the French express business was divided into three separateoperating companies, DHL Express France (the domestic parcels business), DHL International Express(with 1,600 staff at 32 locations) and DHL Freight (the road transport business). This summer DHLannounced that it planned to cut a total of 285 jobs at the three companies and transfer 150workers to other locations in response to falling volumes.
