The Netherlands-based global package delivery firm’s announcement of its intended sale of TNT Innight came just five days after China’s Ministry of Commerce approved the $4.8 billion acquisition of TNT Express by parcel giant FedEx.
TNT Express N.V. said Wednesday it intends to sell its overnight distribution subsidiary TNT Innight to private equity firm Special Situations Venture Partners III (SSVP).
The Netherlands-based global package delivery firm said it wants to sell the subsidiary so it can concentrate its resources on strengthening its core express delivery activities instead.
TNT Innight provides nighttime distribution services across Europe to companies in the agricultural, automotive, engineering and construction, high tech, life sciences and materials handling sectors. The subsidiary manages its own distribution network, distinct from that of TNT Express, employing around 1,300 people across 40 facilities throughout Northern and Central Europe.
Although TNT Innight will continue to function as a standalone business, it will operate under a new brand name. In addition, the sale will not affect the terms and conditions of TNT Innight’s agreements with customers and suppliers.
The transaction is expected to close during the third quarter of 2016, pending customary conditions. Financial details were not disclosed.
SSVP’s current portfolio consists of seven companies, including solvadis, a chemical distribution services provider; LKE, a transportation solutions equipment provider; Vivonio, a furniture group; automotive supplier Beinbauer and its daughter company WMK; Jessen, an electrical sheet components manufacturer; Oetinger, an aluminum casting alloys supplier; and Nordic Paper, a specialized paper producer, according to SSVP.
The news of TNT’s intended sale of TNT Innight comes just five days after TNT and FedEx obtained unconditional approval from China’s Ministry of Commerce for FedEx’s $4.8 billion acquisition of TNT Express.
“With this final regulatory approval, we are one step closer to making the vision of combining the complementary networks of FedEx and TNT Express a reality,” TNT Express CEO Tex Gunning said in a statement.
TNT looks to sell overnight distribution subsidiary
