TNT sells logistics arm for $2bn to US fund

AMSTERDAM: Dutch mail firm TNT has agreed to sell its underperforming logistics business to US-based private equity fund Apollo Management for e1.48bn ($1.9bn), it said on Wednesday.

The deal is valued on a cash and debt-free basis, and TNT said it will receive e15m of the proceeds in the form of a 5% equity stake in the new company.

“This transaction is an important milestone ... and will enable us to fully focus on growing our core network business,” TNT chief executive Martin Bakker said in a statement.

TNT said it expected to return most of the deal’s net proceeds, which the company estimates to be between e1.2bn and e1.3bn, to shareholders via a share buyback program of up to e1bn. TNT announced in December its intention to sell its logistics activities to concentrate on mail and express delivery, which represent about a quarter of group revenue.
The Dutch firm had expected make a profit on the sale and close it in the second half of the year.

TNT said that one of its management board directors, Dave Kulik, will resign and become CEO of the new company.