Hermes may get strategic partner; owner Otto advised by Rothschild - report (translated)
31 AUG 2018
Hermes, the German package delivery company, may see the entry of a strategic partner, Boersen-Zeitung reported.
The German-language daily, without identifying sources, said the owner of Hermes, the trade and services group Otto, is seeking a partner to take over a significant part of Hermes, and is advised by investment bank Rothschild in this effort.
Otto is particularly interested in drawing investment into the Hermes operations in the largest European e-commerce markets, the report said, naming these as Germany, the UK and France. The overall turnover of the business is estimated at about EUR 2.5bn, the report said.
Internationally active online retailers and logistics companies are among the types of strategic partners being considered, the report said.
Otto may even let a partner gain a majority stake in the package distribution operations of Hermes Europe, the report said. It added that the new investor would need to be a good cultural fit. The family-owned Otto would still want to hold a significant stake in Hermes and retain influence over its strategic decisions, the article claimed.
The newspaper said Otto is thought to be seeking investment with a view to capitalizing on growth prospects for Hermes. In the coming three years, about EUR 500m is intended to be invested into Hermes, according to the article.
The newspaper was told that if the investor hunt is fruitless, Hermes remains in a position to grow profitably.
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