Deutsche Post DHL Group’s acquisition of J.F. Hillebrand Group is a done deal

Following an August 2021 announcement, in which it announced it inked an agreement to acquire Mainz, Germany-based global ocean freight forwarding services provider J.F. Hillebrand Group and its related subsidiaries for roughly $1.5 billion (EUR), global logistics services provider Deutsche Post DHL Group (DPDHL) said today the deal is now official. 

DPDHL officials said that after obtaining all necessary approvals by the required antitrust authorities, “the takeover has been consummated,” adding that J.F. Hillebrand is part of the DHL division Global Forwarding, Freight, led by DHL Global Forwarding, Freight, CEO Tim Scharwath.

Established in 1844, J.F. Hillebrand is a global service provider, focusing on ocean freight forwarding, transport, and logistics for beverages, non-hazardous, bulk liquids, and other products requiring special care. Hillebrand has extensive expertise in liquid logistics with a global footprint in more than 90 countries and more than 2,700 global employees covering major trade lanes, according to DPDHL. It specializes in the ocean freight forwarding of beer, wine, spirits and non-alcoholic beverages and other bulk liquids. J.F. Hillebrand's best-in-class IT systems and customer facing tools provide the basis for outstanding service quality with exceptional customer experience, said DHL, adding that J.F. Hillebrand also produces Flexitanks as part of its individualized shipping service solutions for liquid products, which set the benchmark in this area.

DPDHL said that Scharwath will also lead the combined businesses of J.F. Hillebrand and Gori, a wine and spirits specialist that has been part of DHL Global Forwarding, Freight, going back to 1988, with Cees van Gent, J.F. Hillebrand CEO and Chairman of the Board, leaving the group. And the new business will take on the brand name “Hillebrand-Gori—a DHL Company,” with this deal increasing DPDHL’s position in the ocean freight forwarding market.

“Hillebrand's expertise in the logistics of beverages, beer, wine and spirits is an excellent addition to our portfolio. In line with our Group Strategy 2025, we can further strengthen our logistics core and benefit our shareholders with profitable, long-term growth,” said Frank Appel, CEO Deutsche Post DHL Group, in a statement. “This bolt-on acquisition is a great opportunity for us to add a number of services to our high-quality ocean freight service portfolio, which will strengthen earnings and longstanding client relationships from the start.”

DPDHL noted that Cobepa, J.F. Hillebrand's majority shareholder, will sell its entire stake in the company, following a 16-year ownership period, over which time the company “reinforced its leadership position in the beverage freight forwarding and bulk liquids markets through organic and inorganic growth as well as through its relentless focus on both superior service and customer-centricity.”

When this deal was first announced in August 2021, DPDHL’s Scharwath told LM that there were various drivers that factored into this acquisition.

“[W]e can confirm that the growth and strong performance of our DHL Global Forwarding in recent years has prompted us to review bolt-on acquisition opportunities that could further strengthen our market position,” he said. “Hillenbrand proved a great fit and will generate healthy margins in a fast-growing business. For DHL, it offers attractive exposure to the fast-growing bulk liquid and adjacent commodities markets. Additionally, it will add substantial ocean freight volumes to our network, which will strengthen our market position and provide scope to optimize procurement.”

As for what bringing J.F. Hillebrand into the fold means for DHL’s customers, Scharwath explained that Hillebrand has an offering that is highly complementary to the DHL Global Forwarding business.

“It provides specialized capabilities that will enhance our portfolio and provide our customers, particularly in the alcoholic beverage, food and bulk liquid segments, with additional value-added services,” he said. “It will provide access to flexitanks (used in the transportation of liquids) in the market, which our team evaluates as the highest quality in the market. Importantly, Hillebrand has a best-in-class IT platform which will be a good fit with our myDHLi suite of tools and our overall digitalization agenda, which is focused on simplifying and optimizing our customers’ shipping processes.”

When asked to identify the biggest competitive advantages of this deal from a DPDHL perspective, Scharwath observed that the acquisition strengthens its position in the ocean freight market and also in the specialized bulk liquid segment and adjacent areas such as liquid food and pharmaceuticals, which are on a positive growth trajectory.    

“DHL Global Forwarding already has a strong presence in specialized alcohol delivery, for example, with its Gori wine and spirits business,” he said. “Hillebrand will add services that DHL Global Forwarding / Gori today do not have and increase volumes on several trade lanes. The footprints of the companies are complementary, which will open up new opportunities and unlock value for customers of both companies while creating topline synergies from cross-selling.”