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Apollo buys Evri from Advent Group - to advance their delivery services 

Apollo Strikes £2.7bn deal for UK parcel group Evri

Logistics deal comes as UK parcel market faces shake-up from takeover of Royal Mail

What’s going on HERE?

US investment group Apollo has struck a deal to buy UK parcel delivery company Evri, handing it control of key rival Royal Mail as Czech billionaire Daniel Kretinsky seeks to reinvigorate Britain’s main postal operator.

According to a person familiar with the matter, Apollo is set to acquire Evri from Advent International, the company’s current private equity backers, for roughly £2.7bn.

Advent bought the business in 2020 when it agreed to a €1bn deal to acquire the UK operations of the Hermes parcel delivery group from German mail-order company Otto.

The company was relaunched as Evri two years later, and now serves more than 12mn customers a week, Apollo said in a statement on Thursday.

Why is this happening?

Royal Mail is losing its place in the delivery sector, which it has dominated for years, allowing increased competition from other companies.

While the regulated postal provider has struggled with declining demand for letters, rivals including Evri have gained market share by focusing on the growing market for online shopping deliveries.

What are its impacts on Apollo?

The deal allows Apollo a secured entrance into the UK delivery market. The Advent group has invested in Evri to improve it over the past four years. They have focused on creating an innovative model, technology and infrastructure purpose-built for reliable, lower emissions delivery in a fast-growing e-commerce market.

What are its impacts on Advent Group?

The deal allows for a partnership with Apollo.

Evri is also valued at 2 billion ($2.55 billion) including debt.

Which firms are involved?

Sidley Austin is serving as legal counsel to the Apollo Funds.

Hope you enjoyed it! 

Lemah Islam