Taking advantage of the growth of e-commerce during the
lockdown, the private equity firm Advent
International is buying the UK operations of Hermes. It is going to take
over a minority stake in the delivery company’s German business as well.
The deal is going to cost Advent €1bn and will see it
acquiring 75 per cent of Hermes’
Leeds-based UK business. This involves delivering parcels for retailers such as
Next and John Lewis. The buyout price also includes 25 percent stake in the
delivery company’s German operations. The pandemic has led to a boom of the
online shopping sector and if we take into consideration the way things are
going on, it will result in Hermes being a corporate winner. With the increase
in consumer demands, it needs Advent to be able to expand its delivery
operations.
According to Nick Rose, a managing director at the private
equity firm, the deal is part of a long-term investment play around the
fulfilment of e-commerce. He said that the company “expects the peak [in
demand] this year to be the largest peak to date”. Currently, 31 percent of UK
online retailers use Hermes
to deliver their products. Nonetheless, as experts advance, the impact of the
coronavirus on consumer spending cannot be predicted.
Advent is taking advantage of the e-commerce growth
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