TNT agrees the sale of its logistics division

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TNT NV has agreed the sale of its logistics division to Apollo Management, L.P, an international private equity firm.

The deal includes a total transaction value of € 1,480 million on a cash and debt free basis, of which €15 million will be received in the form of a 5 per cent equity stake in the new company.

TNT says that it intends to return most of the net proceeds, which are estimated at between €1.2 billion and €1.3 billion, to its shareholders by way of a share repurchase program with a value of up to €1 billion.

Last year, TNT NV announced that it was looking to sell TNT Logistics to focus on its core competency of managing delivery networks.

Peter Bakker, chief executive officer of TNT, said: “I am pleased that we have been able to come to an agreement with Apollo. I am proud of the employees and management of Logistics for their dedication and commitment to TNT. They have been able to keep the business developing and solid over the last nine months and we are very confident of their future success.”

After completion of the transaction, Dave Kulik is expected to resign from the TNT board of management to become chief executive officer of the new company.

Gareth Turner, a partner at Apollo Management, said: “The Logistics division is a world class business with 36,000 dedicated professionals, a strong management team and an impressive customer list. We see it as a clear platform for growth and we are happy that the management team has committed themselves to work with us on achieving that growth. As long term investor, Apollo Management looks forward to helping the Logistics division to further build its top position in the contract logistics market worldwide.”

The sale is conditional upon the agreement of shareholders and the approval of EU and other regulatory bodies.

TNT NV says it expects to complete the transaction before the end of the year.

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