Deutsche Post World Net agreed to buy parts of KarstadtQuelle's department store shipping and mail-order delivery businesses.
Yesterday's announcement was made by Deutsche Post World Net and KarstadtQuelle in a joint press conference at KarstadtQuelle's Essen, Germany, headquarters, according to DPWN.
The assets being purchased generate about $652 million in annual sales. Deutsche Post agreed to pay more than $261 million.
Starting April 1, Deutsche Post's DHL Solutions unit takes over distribution logistics for Karstadt Warenhaus AG. A total of 2,650 staff work in this sector, in which annual sales volume is $339 million.
Also, the bulk-goods and part-load operation of the mail-order suppliers Quelle and Neckermann will be run by DHL Solutions. Sales volume totals about $352 million with 1,000 people employed at 11 locations.
The transaction is subject to approval of supervisory bodies and relevant authorities.
Klaus Zumwinkel, chairman of the DPWN management board, said the takeover is “at present Europe's largest logistics contract.”
KarstadtQuelle is selling the business along with smaller department stores and specialty chains as part of a plan to shore up losses and revive sales. The company has completed 35 percent of its goal of selling $1.4 billion worth of assets.
Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters