Evri and DHL to Join Forces: What You Need to Know

Evri and DHL to Join Forces

Table of Contents

• Evri and DHL to Join Forces

  • What Is Happening?

  • Why This Deal Matters

  • Who Are the Parties Involved?

  • Which Law Firms Are Involved?

  • How do Law Firm Practice Areas Work Together?

  • Any Legal Issues and Commercial Issues?

  • The Role of Trainees

  • Legal Lingo

    • Scheme of Arrangement

  • AND MORE…

What Is Happening?

Evri, one of the UK’s leading parcel delivery companies, is merging with DHL eCommerce UK, the delivery arm of global logistics ain't DHL Group. The deal will create a major new player in the UK’s delivery sector, handling over a billion parcels and business letters annually.

Why This Deal Matters

Evri has grown ten times in size over the past decade and wants to expand further, especially internationally. By joining forces with DHL, Evri gains access to DHL’s global delivery network in Europe, the US, and parts of Asia. For DHL, the deal increases its presence in the UK delivery market and adds business letter services to Evri’s offerings.

Who Are the Parties Involved?

The two main companies involved are:

• Evri - a UK parcel delivery company by private equity firm Apollo.

• DHL eCommerce UK - the UK delivery business of DHL Group, a global logistics company.

As part of the deal, DHL will take a significant minority stake in the new combined company, which will continue to operate under the name Evri Group.

Which Law Firms Are Involved?

Several top law firms are advising on this deal:

• Linklaters is advising DHL. They have worked with DHL before and are leading on the legal structure and regulatory approval of the merger.

• Sidley Austin and Paul Weiss are advising Evri and Apollo.

Sidley is focusing on the private equity aspects of the deal.

Paul Weiss is handling corporate finance, competition law, international trade, and investment issues.

How do Law Firm Practice Areas Work Together?

This deal shows how different departments in a law firm come together:

• Corporate lawyers handle the main merger documents.

• Private equity teams deal with the investor side (Apollo)

• Finance and capital markets lawyers manage the funding of the deal.

• Antitrust and regulatory lawyers check that the deal won’t break competition laws.

• Trade and foreign investment lawyers ensure the deal meets international legal standards.

Any Legal Issues and Commercial Issues?

The merger brings several important legal and business challenges:

• Competition and regulatory approval: Authorities must approve the deal to ensure it doesn't reduce competition in the UK delivery market.

• Foreign Direct Investment (FDI): Because DHL is a global company, the deal must also comply with laws around foreign investment in UK businesses.

• Ownership and Control: As DHL is only taking a minority stake, lawyers must carefully set out how decisions will be made in the new company.

• Merging operations: The companies will need to combine delivery systems, staff, contracts, and branding—this creates both legal and practical issues.

• Data protection: Handling customer data securely and legally is a top priority, especially under GDPR.

• Financing and Private equity: Apollo’s involvement as a private equity owner adds layers of legal work around how the deal is funded and managed.

The Role of Trainees

1. Due Diligence Support

Trainees help review key documents from both companies (e.g. contracts, leases, employment agreements) to identify risks, obligations, or unusual terms that could affect the merger.

2. Data Room Management

Trainees assist in setting up and organising the virtual data room where all the legal and financial documents are stored for review, ensuring files are correctly named, up-to-date, and accessible to authorised people.

3. Legal Research

Trainees conduct legal research on regulatory and technical points. For example, they might research competition law, foreign direct investment rules, or delivery service regulations in the UK and abroad.

4. Drafting and Proofreading Documents 

They help prepare and proofread legal documents such as broad resolutions, smoothly. This includes liaising with the internal team and external counsel to keep things on schedule.

5. Cross-Team Coordination

Because deals like this involve several legal departments (corporate, finance, execution of documents, and double-check that everything is completed correctly for closing day.

6. Client Communication

Trainees might sit in on client calls or meetings, taking notes and drafting follow-up emails or action points for the legal team.

Legal Lingo

Scheme of Arrangement

A compromise or arrangement between a company and its members or creditors (or any class of them) under Part 26 of the Companies Act 2006 (CA 2006). A scheme of arrangement can be used to effect a solvent reorganisation of a company or group structure, including by merger or demerger, as well as to effect solvent restructurings such as by a debt for equity swap or by a wide variety of other debt-reduction strategies.

The scheme requires approval by at least 75% in value of each class of the members or creditors who vote on the scheme, being also at least a majority in number of each class. If the scheme includes a reduction in the company’s share capital, a separate special resolution of the company’s members (requiring a 75% majority of those voting) is also necessary.

The court’s permission is needed to convene the meetings of members and creditors to vote on the scheme and at this point, the court will review whether any division of the members and creditors into classes for voting purposes is appropriate.

If the relevant members and creditors approve the scheme, the court will decide at a further hearing whether to sanction the scheme, and will look at whether the approved scheme is fair. If the court sanctions the scheme, the scheme is binding on all affected members, creditors and the company.

AND MORE…

• Writing inspired by LittleLaw as this provides the ability to think about every aspect of the Deal - https://littlelaw.co.uk/

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Thank you for reading 😄