TNT Express announced it has sold its domestic road operations in China (Hoau) to private equity funds under the management of CITIC PE. The sale is part of the company’s new corporate strategy (Ti Brief 27/03/13) which also includes the sale of its domestic express business in Brazil.
Hoau provides domestic road distribution services and is a market leader in day-definite delivery services. The company operates a network of 1,500 depots covering more than 600 cities in China.
Commenting on the transaction, TNT Express interim CEO Bernard Bot said: “In the past few years, Hoau has transformed itself into a leading nationwide operator in China. The change of ownership secures the ongoing growth and development of the company. TNT Express will focus on offering the broadest range of international services to and from China.”
The company also stated that the transaction will enable TNT Express to explore new partnership opportunities for its domestic activities in the country. “After completion of the transaction, TNT Express will continue to develop its international express delivery service to and from China. TNT International Express has 3,000 employees and a network of 36 depots across mainland China and three international gateways in Beijing, Shanghai, and Shenzhen.”
The transaction is expected to close in the second half of 2013 with settlement of part of the purchase price to be cleared in 2014.