Deutsche Post DHL has agreed to sell its supply chain operations in China to SF Holding for some €700 million.
The transaction involves the supply chain business in Mainland China, Hong Kong and Macau. Deutsche Post DHL will receive an upfront payment of RMB 5.5 billion (€700 million) and a revenue-based partnership fee over the next ten years.
SF Holding will have access to Deutsche Post DHL’s supply chain services, management expertise, transport and warehousing technology.
The co-branded organisation will operate under the leadership of Yin Zou, the current chief executive for Greater China of DHL Supply Chain, along with his existing management team.
“SF Holding’s local market expertise in China has real advantages for our customers across all industries including technology, healthcare, retail, automotive, and e-commerce,” said Frank Appel, CEO Deutsche Post DHL Group.
“Combined with our global operations standards and network support, the agreement provides a solid foundation to continue exploring further opportunities in China in the coming years.”
Dick Wong, chairman of SF Holding, said: “This partnership agreement will strengthen our capability in providing supply chain services to a diverse realm of industries and allow us to bring world-class management expertise into our supply chain business operations, enabling us to further understand and tailor to our customer needs.”
The deal does not affect Deutsche Post DHL Group’s international express, freight transport and e-commerce logistics activities in China.