Apollo Global Management has finalised a £2.7bn acquisition agreement for Evri, a leading parcel delivery company.
- The firm competed with JD.com and DHL to secure the deal, highlighting its strong interest in expanding in the logistics sector.
- Evri, with its innovative delivery model, has shown remarkable growth, particularly during the Covid-19 pandemic’s e-commerce boom.
- Despite its success, Evri faces challenges like flatlined revenues, increased debt, and poor customer service rankings.
- The acquisition is set to close in Q3 2024, marking a new chapter for Evri under Apollo’s ownership.
Apollo Global Management has secured a definitive agreement to purchase Evri from Advent International in a noteworthy £2.7 billion transaction. This acquisition follows Apollo’s competitive bid against prominent firms JD.com and DHL, underscoring its ambitious expansion in the transportation and logistics sector. With over 30 years of private equity experience, Apollo is well-positioned to leverage its expertise in furthering Evri’s growth.
Evri, a parcel delivery leader with a significant market presence, boasts an innovative operational model focused on efficiency, technology, and reduced emissions. During the Covid-19 pandemic, Evri leveraged its capabilities to benefit from the surge in online shopping, nearly tripling its operational size. It delivers approximately 720 million parcels annually, claiming an 18% share of the UK market. However, recent challenges, including the Ukraine conflict, rising living costs, and workforce shortages, have impacted its financial performance.
Despite its operational successes, Evri faced stagnant revenues, reporting £1.464m for the year ending February 2023, nearly unchanged from the previous year. Its pre-tax profits plummeted by 56%, and net debt escalated to £1.3bn due to Advent’s ownership, exacerbated by increased interest costs. Furthermore, customer service issues have tarnished its reputation, with Evri ranked as the UK’s worst parcel delivery service in a MoneySavingExpert survey, despite high on-time delivery statistics.
Evri’s leadership remains optimistic about the acquisition. Martijn de Lange, CEO of Evri, praised the transformative changes under previous ownership and expressed enthusiasm for partnering with Apollo to capitalise on growth opportunities. This sentiment aligns with Apollo’s commitment to furthering Evri’s success through strategic investments and expansions.
The deal’s completion is anticipated in the third quarter of 2024. Evri continues to evolve, evidenced by recent business moves like securing a partnership with Euro Car Parts and expanding its courier workforce, further reinforcing its position in the market.
The acquisition by Apollo presents a pivotal opportunity for Evri to navigate its current challenges and leverage new growth potential.
