Two major players in UK parcel delivery, Evri and Yodel, are in the middle of significant financial manoeuvres.
Evri, one of the UK’s largest parcel delivery companies, is the focus of a heated auction. Top private equity firms such as Apollo Global Management and Platinum Equity have submitted initial offers, according to Sky News with Evri’s valuation is pegged at approximately £2bn.
The auction, managed by Rothschild bankers, has attracted a mix of private equity and strategic bidders.
Evri, which rebranded from Hermes in 2022, boasts a vast network of more than 20,000 couriers and more than 14,000 ParcelShops and lockers, servicing major retailers and online platforms such as Etsy and Vinted.
It has been owned by Advent International since 2020 and commands a near 20% share of the UK market, delivering over 700m parcels annually.
This surge in interest coincides with the ongoing privatisation of Parcelforce’s parent, International Distribution Services, which also owns Royal Mail.
Meanwhile, Yodel – known for its partnerships with clients such as Argos and Very Group – is actively seeking new funding just months after narrowly avoiding collapse.
Sky News reports that Yodel is in discussions with various potential investors, including Paypoint, which is considering injecting around £10m into the company.
This move forms part of a broader recapitalisation strategy, with other investors potentially contributing between £10m and £40m. Talks could conclude swiftly, with a deal possibly being finalised as early as Friday.
The funding the acquistion of Yodel by a consortium led by logistics tech platform Shift and merchant bank Solano Partners earlier this year.
Yodel delivers more than 190m parcels annually and generated £561.8m in revenue last year, adding new clients such as eBay and Boden. It is in the process of integrating technology from Shift to modernise its operations.