DHL Allowed to Take over KarstadtQuelle Logistics Operations

German government approves deal as carrier assumes control of department store's large, part-load work

German government approves deal as carrier assumes control of department store's large, part-load work

Bonn — June 17, 2005 — The German government has approved DHL's takeover of the distribution logistics for the large and part-load operations of KarstadtQuelle AG, which the two partners planned in January and which is scheduled to take effect on July 1.

DHL, a fully owned subsidiary of Deutsche Post AG, has already acquired the distribution logistics operations for Karstadt department stores at the goods distribution center in Unna, effective April 1.

With Germany's Federal Cartel Office approving the latest takeover, Frank Appel, the board member in charge of logistics at Deutsche Post World Net, said that this move would substantially strengthen DHL's contract logistics operations. "We can now push ahead with the integration of both logistics operations into our structures," Appel said.

"This cooperation will yield tangible financial and qualitative benefits for both companies," said Harald Pinger, finance director and head of the mail-order division at KarstadtQuelle. "For our part, we will profit from the experience of a professional and modern logistics partner. At the same time, we are happy about the successful conclusion of another chapter in our divestment program."

The proceeds from the sale will go to KarstadtQuelle AG once the logistics operations are transferred.

The department store logistics and large and part-load operations for the two mail-order groups Quelle and Neckermann, which DHL Solutions will handle in the future, represent a combined sales volume of about 500 million euros, or about $609 million. Under the 10-year contract, this amounts to a total volume of 5 billion euros.

With annual revenues over $32 billion in 2004, DHL stakes a claim as the global market leader in the international express and logistics industry. Founded in San Francisco in 1969, the company now has 170,000 employees operating a network in more than 220 countries and territories worldwide.


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— How can you beat the trends and lower your less-than-truckload costs, even in a seller's market? For a guide to help you get started, read the SDCExec.com article "LTL Sourcing: Success for Buyers In A Seller's Market."

— Your company's back-end supply chain may be so efficient that you are the envy of all your competitors. But what about the customer-facing portion? Taking a look at the "last mile" in your supply chain may be what it takes to ensure your customers come back to you  and not your competitors  time and again. Read more in the SDCExec.com article "The Last Mile Is the Longest Mile."

— In order to perform on a world-class level, companies must redesign the supply and service chains to meet market demands. Dramatic changes are in order. Read more in the SDCExec.com article "Leveraging Supply Chain Logistics: Get Physical and Agile."

— For more information on the latest trends in the logistics space, see the article "The Analyst Corner: Fulfillment & Logistics" in the October/November 2004 issue of Supply & Demand Chain Executive.


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