Deutsche Post is to start rebranding Exel as DHL in the new year following completion of the takeover on 13 December. The unit will operate under the DHL brand and use DHL¹s red and yellow colours. After the merger, DHL will operate with two logistics brand areas: DHL Exel Supply Chain and DHL Global Forwarding starting in the first quarter of 2006.
“This acquisition marks a historic step for Deutsche Post World Net. By bringing together these two powerful, high-quality organisations, we are creating the largest logistics company in the world,” said Deutsche Post chief executive officer Klaus Zumwinkel. “Our top priority now is to combine DHL Logistics and Exel in a rapid and efficient manner.” Exel chief executive officer John Allan will run the combined division, which will employ around 150,000 people, be headquartered in Bracknell, near London. Allan said: “Strategically, this acquisition is a good fit as both organisations were looking to increase their geographical footprint to meet the challenges of globalisation and growth in outsourcing. Now we will be able to provide customers with an even wider range of products and value-added services managed by a talented group of people. I am looking forward to leading the new division and working with new colleagues.” The transaction values Exel at 1237 pence per share, or £3.8 billion The merger of DHL Logistics and Exel is expected to take two to three years, with the bulk being completed within the first twelve months. The Group expects to achieve 220 million euros in annual cost savings by 2008.