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In a strategic move to expand its presence in the UK, Polish parcel locker company InPost has successfully acquired UK-based delivery firm Yodel for £106 million. This acquisition is set to position InPost as the third-largest independent delivery business serving e-commerce retailers in the UK.
The takeover allows InPost to increase its market share in the UK from 2% to 8%, marking a significant leap in its efforts to establish a stronger foothold in the region.
Boosting UK Logistics with a Powerful Combination
This acquisition is part of InPost’s broader strategy to enhance its logistics network in the UK. The deal comes just months after the company acquired Menzies Distribution in October of the previous year.
InPost’s plan is to combine its innovative parcel locker network with Yodel’s well-established home delivery capabilities. By doing so, they aim to offer a seamless integration of out-of-home and to-door delivery services, unifying both systems under a single brand for greater customer convenience.
What the Acquisition Means for Parcel Deliveries in the UK
With the merger, the combined entity is expected to deliver over 300 million parcels annually across the UK, serving more than 700 online retailers. This makes the UK an even more crucial market for InPost, which anticipates that 30% of its global revenue will now come from the UK.
CEO Rafał Brzoska’s Vision for InPost in the UK
InPost’s founder and CEO, Rafał Brzoska, expressed that this acquisition is a “pivotal milestone” in the company’s European expansion journey. He noted:
“This deal fast-tracks five years of organic expansion in the UK, showing our long-term commitment to this market,” Brzoska said in a statement. He also emphasized that InPost’s successful delivery model in other European countries will now be replicated in the UK.
How InPost Acquired Yodel and the Deal Structure
The acquisition is structured as a debt-to-equity transaction, where InPost will acquire 95.5% of Judge Logistics Ltd, the parent company of Yodel. The £106 million loan provided to Yodel will be converted into equity shares.
PayPoint, a UK-based payment service company, will retain a minority 4.5% stake in Judge Logistics Ltd.
The Impact on the UK Delivery Landscape
Once the deal is finalized, the merged entity will become the third-largest independent logistics provider for UK-based e-commerce, behind Royal Mail and Evri. Importantly, this excludes Amazon, which handles its logistics independently.
This acquisition is part of a wider trend in the logistics sector, as other companies such as Royal Mail’s parent company were recently acquired in a £3.6 billion deal by Czech billionaire Daniel Křetínský, reflecting the growing competition and investment in delivery services.
What’s Next for InPost?
InPost’s acquisition of Yodel signifies an ambitious step toward becoming a dominant player in the UK’s parcel delivery sector. With the growing e-commerce boom, InPost is now better positioned to meet the increasing demand for efficient and integrated delivery services.
