Private Equity News & Analysis

Apollo Management delivers on $1.48bn TNT unit

TNT Logistics, the freight division of the Dutch postal and express business, has been sold to Apollo Management, a US private equity house, for $1.48bn.

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Apollo Management, a New York buyout firm which listed a $2 billion public vehicle on Euronext Amsterdam in June, has beaten off competition from rival private equity firms to acquire the logistics division of TNT, a Dutch postal and express company.
 
Clayton, Dubilier & Rice and Bain Capital showed early interest in TNT Logistics before The Blackstone Group, PAI Partners and Apollo Management made it through to the final round of the auction for the freight division.
 

TNT: expecting to deliver strong returns for Apollo Management

TNT sold the logistics business in a €1.48 billion ($1.9 billion) transaction, but said that it will return most of the net proceeds, estimated at between €1.2 billion and €1.3 billion to shareholders through a share repurchase of up to €1 billion.
 
The transaction, expected before year-end, is subject to approval at an extraordinary general meeting of TNT shareholders.
 
TNT appointed Goldman Sachs last December to find a buyer for the logistics division, following speculation that the unit had underperformed and could be a takeover target. TNT Logistics is the number two logistics company in the world, according to TNT, employing approximately 36,000 people operating in 28 countries.
 
In June, Apollo Management raised $2 billion for AP Alternative Assets through a listing on the Euronext Amsterdam with 100 million shares at $20. At 12pm BST today, the share price was trading at $19.60. The firm raised $10.1 billion for its sixth buyout fund in January.