DHL to acquire leading domestic express company in the Czech RepublicBonn/Prague, 12/21/2005, 10:30 AM CET
DHL, the leading express and logistics company and subsidiary of Deutsche Post World Net, has agreed to acquire 100 percent of the shares of PPL CZ s.r.o.. Based in Prague, PPL is the No. 1 private player in the Czech domestic express parcel market, serving customers mainly from the IT, pharmaceutical and electronic industries. PPL operates more than 450 vans and 11 depots across the Czech Republic. The acquisition follows two strategic objectives: Firstly, to expand business in Central and Eastern Europe and secondly, to combine DHL's strong international business with a strong domestic business.
DHL is the No. 1 player in the Czech international express parcel market.
With a strong GDP growth, Central and Eastern Europe offers an attractive platform for key industries. In this growing market, the Czech Republic with its geographical proximity and strongly increasing trade lanes to and from Germany fits well into Deutsche Post World Net's strategic approach to serve our customers with an enlarged range of products, similar to those to which they are accustomed in other parts of Europe. Peter Kruse, Member of the Board of Deutsche Post World Net responsible for DHL Express Europe said, "PPL's strengths in the Czech Republic complement ours perfectly. This transaction also represents an important strategic step for us into the fast growing markets to our east."
Commenting on the transaction, Ing. Pavel Horák, Chief Executive Officer of PPL, said, "PPL has succeeded by providing reliable, high quality service at fair prices to our customers. Our customers will continue to enjoy these same advantages, with the added benefit that through DHL, PPL will become part of the leading international network in Europe." The acquisition is subject to approval by the Office for the Protection of Economic Competition of the Czech Republic. Provided that this approval is obtained, it is expected that the acquisition would be completed in the first quarter of 2006. Both parties have agreed not to disclose financial details.