Deutsche Post DHL was keeping tight-lipped today on reports that it wants to sell off a homedelivery business in the US for up to $100 million.
Reuters news agency, citing sources familiar with the matter, reported that DHL could sellits Exel Direct unit, part of its Exel-branded supply chain business in the United States, forabout $100 million. It did not indicate any timescale.
A DP DHL spokesperson told CEP-Research today: “We are not commenting on this report.” Apossible $100 million price tag would make any sale of the business into one of the most valuabledisposals by the group in recent years, according to observers.
Exel Direct provides ‘last-mile’ delivery to consumers of large bulky consumer goods sold bytraditional or online retailers, who are a core customer group for the company. Major customersinclude JC Penney, Sears and Office Depot. The unit’s revenues are not disclosed.
Overall, Exel is the contract logistics leader in the USA, generating revenues of about $2.42billion and operating 331 facilities with some 20,000 staff. The company’s core markets areautomotive, consumer, retail, engineering, life sciences/healthcare, technology, energy andchemicals, according to DP DHL information.
DHL’s US supply chain business still uses the Exel brand due to its strong customerrecognition, the spokesperson explained. “Exel is a well-known brand in the US 3PL market so wedecided to leave it there.”
Deutsche Post acquired UK-based Exel for €5.6 billion in 2005, integrated it into itslogistics division and gradually re-branded most of the businesses as DHL Supply Chain.
