Deal Announcement

goetzpartners advised Advent International on the acquisition of a 75% shareholding in Hermes UK and a 25% shareholding in Hermes Germany

13. août 2020

Hermes UK, the leading consumer delivery company, is to benefit from a significant investment by Advent International (‘Advent’), one of the largest and most experienced global private equity firms. This follows an announcement from Otto Group, that it has formed a partnership with Advent for its Hermes Group businesses in the UK and Germany.

Under the terms of the deal, Advent will partner with the current management team to acquire a 75% stake in Hermes UK. Otto Group will continue to own 25% of the company. The transaction will facilitate further investment by Hermes in technology and infrastructure and support the future growth of the business in the rapidly growing parcel delivery sector. The management of Hermes UK will continue to lead the business as an independent company, with ‘business as usual’ for employees, suppliers and customers.

This follows a recent announcement by Hermes UK that it is looking for more than 10.5K ‘parcel people’ to join its business, to meet the huge demand created by people shopping at home during lockdown, and the continuing growth in the sector. Hermes UK predicts that parcel volumes will reach record levels during the Black Friday and Christmas period.

In addition to the 75% shareholding in Hermes UK, Advent will also acquire a 25% stake in Hermes Germany, which includes other Hermes Germany Group companies including BorderGuru and a share in the ParcelLock joint venture.

The transaction with Otto Group is subject to approval by the boards and relevant antitrust authorities.

goetzpartners Corporate Finance acted as financial advisor to Advent, further underlining our competence advising on international and industry shaping M&A transactions.

Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 350 private equity transactions in 41 countries, and as of March 31, 2020, had €44 billion in assets under management.

Hermes UK is one of the UK’s leading consumer delivery companies, successfully delivering over 400 million parcels a year on behalf of many of Europe’s leading retailers. The company has experienced sustainable double-digit growth for the past 7 years, consistently reinvesting profit into its proposition, infrastructure and people. Last year it became the first company to provide its self-employed couriers with holiday pay following a ground-breaking deal with the GMB Union.