Private Equity: Advent Invests in Hermes UK

Courier services company Hermes will soon benefit from a hefty investment from private equity firm Advent International.  Otto Group has previously announced that it will partner with Advent to grow Hermes Group in Germany and the UK.  

Advent International and Otto Group will partner their management teams to achieve a 75 percent hold in Hermes UK.  Otto Group will have the remaining 25 percent.  The goal of this deal is to help Hermes UK bolster its investments in technology, infrastructure, and strategies.  These investments should help to compete in a robust parcel delivery industry.  Following the buyout, Hermes is planning to go on a hiring spree to meet the rising demand as a result of the Coronavirus pandemic.  Hermes is expecting record levels of business and plans to meet all of its customers’ needs.  

CEO of Hermes UK Martijn de Lange stated “This is fantastic news for Hermes UK as we continue our upwards trajectory in the fast-growing and capital-hungry home delivery sector. The investment will enable us to remain independent and be agile and responsive to future market requirements. It will help to expedite the development of our capacity and technology, supporting the introduction of new innovative products and services that will greatly benefit our retail clients and their customers.”

About Advent

Advent International is a leading global private equity firm that focuses on buyouts.  Its focus areas are in Europe, North America, Latin America, and Asia.  The firm has $54 billion assets under management.  In addition to the 75 percent stake in Hermes UK, Advent plans to acquire a 25 percent stake in Hermes Germany.