FYI - high multiples being paid for acquisitions in logistics.

German wine logistics group Hillebrand prepped for sale: sources

By Arno Schuetze

INDUSTRY, MATERIALS & UTILITIES

APRIL 1, 2021

FRANKFURT (Reuters) - German liquor logistics group Hillebrand is being prepared for sale by its private equity owner in a deal that could value it at more than 1.5 billion euros ($1.76 billion) in a sector that has seen valuations rise in the pandemic, people close to the matter said.

Belgian investor Cobepa is expected to mandate a sellside advisor in the coming months to organise the divestiture of the alcoholic beverage freight forwarder, and is expected to start shopping it to prospective buyers later this year, they said.

Cobepa and Hillebrand were not available for comment.

An online shopping boom during the COVID-19 pandemic has seen demand in logistics assets rise and buyers are comfortable paying full prices, people familiar with the industry said.

French railway operator SNCF is in the final stages of a sale of its railcar arm Ermewa as it seeks to shore up its finances in a deal that could value the unit at 2.5-3 billion euros or 10-12 times core earnings, people close to that auction said.

Infra structure investors Antin, GIP, and consortiums comprising CDPQ and DWS and a second one including Swiss Life and Natixis are expected to hand in final bids by a mid-April deadline in an auction organised by Lazard, the people said.

SNCF, Lazard and the prospective bidders declined to comment.

Elsewhere, in February, Kuehne & Nagel bought Asian logistics provider Apex for just below $1.2 billion, while Czech logistics parks operator CTP NV successfully listed on disallowed.

Mainz-headquartered Hillebrand has annual earnings before interest, tax, depreciation and amortization of 100-120 million euros and could be valued at around 15 times that, the people said.

Peers such as DSV, Kuehne und Nagel, Deutsche Post, XPO and Kerry Logistics have all seen their shares rise substantially over the last twelve months, trading in a wide range of 7-18 times their expected core earnings.

Logistics groups and private equity firms are expected to show an interest in Hillebrand, which has annual revenue of 1.4 billion euros, serving 25,000 companies and employing 2,700 staff.

The company was founded in 1844 and Cobepa first acquired a 40% stake in 2006, which it later increased to 58%. In October, Hillebrand bought British peer Braid which has 200 million euros in sales.

In the pandemic, Hillebrand benefited among other from a surge in bulk shipments of wine, which are being bottled in Europe and sold at retailers, while restaurants were unable to serve their typically pricier wines usually bottled directly at the vineyard.

($1 = 0.8518 euros)

DEALS

AUGUST 17, 202111:08 PMUPDATED 13 DAYS AGO

Deutsche Post to acquire sea freight forwarder Hillebrand for $1.8 billion

DUESSELDORF (Reuters) -Deutsche Post said on Tuesday it was acquiring ocean freight forwarder J.F. Hillebrand Group for 1.5 billion euros ($1.8 billion) in cash, as part of a strategy to strengthen its core logistics operations.

The move comes as shortages of freight capacity - both ocean and air - have pushed up shipping costs globally, with the coronavirus pandemic also extending port waiting times due to labour shortages and traffic disruptions.

Global supply chains have been pushed towards breaking point by COVID-19 and natural disasters, threatening flows of raw materials, parts and consumer goods, according to companies, economists and shipping specialists.

Deutsche Post DHL Group, one of the world’s biggest logistics groups, said it expected the fast-growing business would contribute to earnings from day one.

“The acquisition of Hillebrand is a unique opportunity for Deutsche Post DHL Group to add high quality ocean freight services with strong margin characteristics and high cash flow generation,” said finance chief Melanie Kreis.

The agreed purchase of Hillebrand, which generated 1.4 billion euros in revenues over the past 12 months and is expected to ship half a million containers this year, will be paid for out of available cash, Deutsche Post said.

The transaction, subject to regulatory approval in jurisdictions including the European Union and the United States, is expected to close in the coming months.

($1 = 0.8499 euros)