TNT Express is to sell its overnight distribution subsidiary TNT Innight to the private equity firm Special Situations Venture Partners III, as it wants to concentrate resources on strengthening its core express delivery activities.
TNT Innight provides night-time distribution services in Europe to companies in sectors such as automotive, agriculture, and engineering machinery.
Innight manages its own distribution network, distinct from that of TNT Express and employs about 1,300 people across 40 facilities in Northern and Central Europe.
The transaction is expected to close in the third quarter of 2016.
Special Situations Venture Partners funds invest in medium-sized companies and corporate subsidiaries. It intends to provide TNT Innight with the financial resources required to achieve its growth plans. TNT Innight will continue to operate as a standalone business, under a new brand name.
TNT Express and TNT Innight have a some customers in common, for example in the automotive, engineering machinery, and agriculture sectors. TNT Express said it would continue to support these customers and industry sectors as before.