The joint venture will encompass all the current TNT Post UK operations, which includes the downstream access activities and will be led by the current TNT Post UK management team. The TNT Post UK ambitions for the roll out of the E2E network will be funded by LDC and RBS upon completion. This partnership will enable TNT Post UK to build its competitive position and continue to innovate the UK postal industry by providing choice and new and cost efficient services for customers.
Marcel Krom, PostNL Executive Committee member responsible for the international activities commented: "With this joint venture PostNL is able to maintain its strategy to be number 2 in the European markets in which it operates. The successful trials in London have shown that TNT Post UK can build a real, profitable alternative to Royal Mail, by meeting customer's demand for quality, innovative and cost effective services. PostNL is confident that the new combination will contribute to the positive development of a fast changing mail market."
PostNL will have a 40% stake in the joint venture. Under the new accounting rules for joint ventures, the financials of the UK activities will be equity accounted for after completion of the transaction (in the line "Investments in Joint Ventures and Associates"). Accordingly, the segment results of International will consist of Germany, Italy and Spring. The transaction is subject to a number of conditions, including approval by the European Commission and is expected to close early 2014. Further details will be provided at that time.
The deal was transacted by LDC's Reading team, led by Managing Director Yann Souillard and Investment Director Alex Clark. LDC and PostNL executed the transaction with support from a number of regionally based advisors, including Shoosmiths, Sullivan & Cromwell and HMT Corporate Finance.
LDC is the leading private equity company in the UK mid-market. LDC is part of the Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority. It has completed over 485 investments and has ongoing interests in over 85 businesses in the UK. With a UK regional network, LDC invests up to £100m in MBOs, IBOs and Development Capital transactions in a broad range of sectors including Construction & Property, Financial Services, Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure and Support Services. Recent transactions include investments with NEC Group, PDG Helicopters, Waterfall Services, Capital Economics, Eley Group, Adler and Allan, Clifford Thames and Anite Travel. For further information, visit www.ldc.co.uk.
We are PostNL. The postal and logistic solutions provider. For our customers, we are the link between the physical and the online world. We facilitate communications between people and companies. We deliver parcels seven days a week and letters five days a week. On an average day, we deliver 575,000 parcels and 9 million letters throughout the Benelux. We offer more and more new services through combinations of smart networks, digital applications and the right communications channels. In doing so, we aim to make the daily lives of our customers easier.
As the first listed postal company, we have the largest and most modern network for letters, parcels and e-commerce in the Benelux countries. In addition, we also operate in Germany, Italy and eight other countries across the world. PostNL employs a total of 46,000 people. With our loyal workforce, extensive networks and innovative drive, our ambition is to be the leading postal and logistics solutions provider in chosen markets. In 2016 our revenues reached €3,4 billion.