DHL has been busy over the Christmas period, divesting itself of two loss-making business: DHL Container Logistics and its B2B and B2C parcel operation known as Day Definite Domestic, a division of DHL Express (UK).
First to be sold was the container operation, which was snapped up by rival haulier Maritime Transport shortly before Christmas for an undisclosed sum, with the Felixstowe haulier taking control from 1 January.
However, DHL dropped another bombshell as CM went to press, with the announcement that its DHL Express division was offloading its domestic parcel operation to Home Delivery Network (HDNL).
The business will be transferred to HDNL by the end of Q1 2010, including some 4,700 people, five hubs and 71 service centres. The combined business will have an annual turnover of around £600m, £325m of which comes from HDNL.
DHL Express says it will now concentrate on Time Definite International and Same Day express services both internationally and in the UK through its Servicepoint facilities.
Ken Allen, CEO of DHL Express says: "We are confident that this move will help us improve the overall quality of our international services while at the same time enhancing domestic parcel services for UK customers."
Ken McCall, CEO of DHL Express (UK) adds: "It was important to us to divest our own parcel business to a company we can trust."
HDNL has acquired the business to "allow it to challenge Royal Mail more effectively". Its chief executive Brian Gaunt says: "Combining these businesses will enable us to offer our clients a wider variety of propositions and a more efficient service."
According to its latest set of accounts, for the year ending 31 December 2008, DHL Express (UK) made a pre-tax loss of £108.2m on turnover of £459.5m.
It was a similar story at DHL Container Logistics which made a pre-tax loss of £2.9m of turnover of £55m in the same period and was heavily in debt to its parent company.
Nonetheless, the deal with Maritime Transport, which creates the country's largest container haulier, is a good acquisition insists its MD John Williams.
He says: "It's a loss-making company, so we have some pressure to resolve that situation as soon as possible. But the integration will happen at the quietest time of the year for us, so we can put all our efforts into it."
