DHL, a subsidiary of Deutsche Post World Net, has agreed to acquire 100 per cent of the shares of the Prague-based parcel distributor PPL CZ s.r.o.
Peter Kruse, a board member of Deutsche Post World Net, responsible for DHL Express Europe, said: “PPL’s strengths in the Czech Republic complement ours perfectly. This transaction also represents an important strategic step for us into the fast growing markets to our east.” Kruse added that the Czech Republic with its geographical proximity and strongly increasing trade lanes to and from Germany, fits well into Deutsche Post World Net’s strategic approach. He said the deal will allow it to expand its range of products, similar to those in other parts of Europe.
PPL is the number one private player in the Czech domestic express parcel market, operating more than 450 vehicles from eleven depots across the country.
Chief executive officer of PPL, Pavel Horak said: “PPL has succeeded by providing reliable high quality service at fair prices to our customers. Our customers will continue to enjoy those same advantages, with the added benefit that through DHL, PPL will become part of the leading international network in Europe.” The acquisition is expected to be completed during the first quarter of 2006, subject to approval of the Office for the Protection of Economic Competition of the Czech Republic.
Both DHL and PPL have agreed not to disclose financial details of the deal.