TNT Innight will re-brand as an independent specialist express operator following TNT's decision to sell off Europe’s largest ‘night express’ company.
The Dutch company announced that it would sell TNT Innight to the private equity firm Special Situations Venture Partners III ("SSVP"), advised by Orlando Management AG. The transaction is expected to be completed in the third quarter of 2016.
TNT Express, set to be acquired by FedEx in the coming weeks, explained it will sell the overnight distribution subsidiary as it plans to focus on strengthening its core express delivery activities.
TNT Innight provides night-time distribution services in Europe to companies in sectors such as automotive, agriculture, and engineering machinery. It manages its own distribution network, separately from that of TNT Express, and employs about 1,300 people across 40 facilities in Northern and Central Europe.
Its core business lies in Germany where 1,000 employees at 23 branches sort and deliver about 124,000 consignments a night, and about 30.8 million a year, according to information on its German website.
TNT Innight’s revenues are not disclosed separately but it comprises the bulk of TNT’s ‘Unallocated segment’ (together with Central Networks and Head Office functions) which had revenues of €477 million last year.
TNT Express noted that it and TNT Innight have a few “valued customers” in common, for example in the automotive, engineering machinery, and agriculture sectors. TNT Express said that it will continue to support these customers and industry sectors as before even after the sale.
Looking ahead, TNT Express said that after the transaction is completed, TNT Innight will continue to operate as a standalone business, under a new brand name. SSVP plans to provide TNT Innight with the financial resources required to achieve its growth plans.
The Dutch company stressed that the sale will not affect the terms and conditions of TNT Innight’s agreements with customers and suppliers.
Founded in 2001, SSVP funds invest in medium-sized companies and corporate subsidiaries. With more than 45 transactions over the last 15 years, SSVP is one of the most experienced investors in Europe and has a long-term track record in creating sustainable value through a focus on portfolio companies’ operational strengths. Its current portfolio consists of seven companies with annual worldwide revenues of €1.5 billion.
