DHL Sells Parcel Business to HDN

DHL has agreed to sell its UK domestic parcel business to Home Delivery Network (HDN), a provider of domestic business-to-consumer parcel deliveries in the UK. The latter will assume all employees and facilities of the business.

In order to leverage the core strengths of both companies the parties have entered a wider preferred supplier relationship, under which the latter will continue to use the DHL Domestic brand in the short term. This will enable domestic parcel customers of both companies to benefit from a wider range of services. Furthermore, the agreement also covers joint customer management processes as well as a preferred supplier status of DHL for logistics services.

The agreement is limited to the former’s domestic parcel business, also known as the Day Definite Domestic business, which concentrates on shipments that are delivered within the UK on a certain day rather than at a specific time of the next day.

DHL plans to transfer its UK day definite parcel operations to HDN by the end of the first quarter 2010. The business currently employs some 4,700 people and operates five hubs as well as 71 service centers spread throughout the UK.

The transaction is subject to regulatory approval.

DHL, www.dhl.com