Österreichische Post AG (”Austrian Post”) announced today that it will buy a 74.9% majority stakein German express parcels company trans-o-flex with effect from the end of 2006. The acquisition
will form the basis for the company’s expansion in the international parcels and logistics sector.Austrian Post said that it is buying the majority stake in trans-o-flex GmbH and itsaffiliated companies from private equity funds managed by Odewald & Compagnie and Alpha Group.Odewald & Cie. and Alpha will retain a stake of 25.1%. The management and supervisory board ofAustrian Post have already approved the transaction. The transaction still requires approvalby the relevant antitrust authority.
In the twelve months to June 2006, trans-o-flex generated revenues of approx. EUR 460 millionand EBITDA of approx. EUR 27 million. The Enterprise Value as of 30 June 2006, the effective dateof the transaction, was calculated at EUR 225 million.
Austrian Post said that the parties have agreed not to disclose the purchase price(enterprise value less net financial debt). According to the terms and conditions of thetransaction Austrian Post has an option to acquire the remaining 25.1% in 2009 at the latest.Austrian Post expects the transaction to yield a post-tax return on invested capital of more than7%, which is above Austrian Post’s internal hurdle rate for the cost of capital.
“With this acquisition Austrian Post is building the foundations for further growth in adynamic market for parcel and logistics services. As a result of the transaction Austria willbecome a veritable platform at the crossroads between Western and Eastern Europe and our efforts tobuild a pan-European niche business have only just started,” commented Dr. Anton Wais, ChiefExecutive Officer of Austrian Post.
trans-o-flex is one of Germany’s leading specialized logistics service providers for expressdelivery in the business-to-business segment with a focus on the life science, consumerelectronics/home entertainment and lifestyle/cosmetics industries. By assuming corporate leadershipat trans-o-flex, Austrian Post is taking control over one of only a few Germany-wide logisticsnetworks with 39 delivery centres.
In 2005, trans-o-flex handled approx. 49 million shipments and employed approx. 890employees. The range of services offered by trans-o-flex also includes specialized services such astransportation of hazardous goods and temperature controlled products. To handle its internationalfreight traffic activities, trans-o-flex operates the European logistics network EURODIS, acombination of European logistics companies that is currently being built up.
With this transaction Austrian Post will strengthen its parcel and logistics division,increase its European footprint and intensify its existing successful cooperation withtrans-o-flex. Today, Austrian Post already delivers out of the trans-o-flex-network approx. 5,000parcels per day in Austria which is trans-o-flex’s most important foreign market. For both partnersadditional value-creation opportunities will arise especially from the expansion of their combinedinternational network. As a result of the transaction the parcel and logistics division of AustrianPost now has a universal network of its own, covering Germany, Austria, Slovakia and Croatia.
Goldman Sachs was exclusive financial advisor to Austrian Post in the transaction.
