Parcel delivery group Yodel has been acquired by a privately funded consortium led by executives of rival company Shift for an undisclosed sum.
A newly formed company, YDLGP, which is backed by executives at parcel delivery group Shift and investment bank Solano Partners, struck a deal for an undisclosed amount to rescue Yodel this morning, as first reported by Sky News.
The rescue deal was confirmed “on a solvent basis” and reportedly without Yodel having to call in administrators, as was widely speculated in the days leading up to the deal.
Yodel confirmed in a statement that its new owner YDLGP has agreed terms to acquire the entire issued share capital of Shift and when the deal is complete the group will form a “super scale” logistics platform.
Yodel said that Shift’s leadership team will provide “significant technoloy and operational expertise” and added that the deal and access to capital it facilitates will save thousands of jobs and provides “surety” for drivers, suppliers and customers across the UK.
Yodel is one of the biggest parcel providers in the UK, delivering parcels for retailers including The Very Group, Argos and JD Sports and competing with the likes of DHL and Evri.
Yodel chief executive Mike Hancox told Sky: “We’re extremely excited to begin the next chapter of Yodel’s journey, leveraging the scale of our business with the support of new shareholders and the future benefits of the Shift technology platform.
“Our customers have always been our priority and the transaction announced today allows us to ensure continuity for them, as well as our employees and wider stakeholders.”
Rapid AI-driven scale
Shift founder Jacob Corlett said: “I am incredibly proud of what we have built at Shift in the last few years, rapidly scaling our tech-logistics platform, and M&A has been a big part of that success.
“At the heart of this merger is Shift’s revolutionary AI-driven technology platform, promising a future where efficiency and automation become the backbone of logistics operations.
“I look forward to working with Mike and the Yodel team, and with the support of YDLGP, continuing our journey building and scaling logistics through technology.”
Solano founding partner Jon Edirmanasinghe added: “We believe there is a fantastic opportunity to harness the strong brand and scale of Yodel in the UK and take further market share with the support of fresh capital and the innovative technology provided by the Shift team.
“We’ve seen the Shift team successfully acquire and relaunch the Tuffnells business and believe that forming the enlarged group to house all three creates a disruptive logistics powerhouse.”
The news comes following reports last week that advisers at Teneo were “on standby” as Yodel made preparations to call in administrators if it failed to find a buyer.
Yodel owners the Barclay family could not be reached for a comment.
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