CVC delivers Danish post office deal

The London-based buyout firm has acquired a 22 percent stake in Post Danmark, the state-owned Danish post office, from the Danish government.

CVC Capital Partners, the London-based pan-European buyout house, has acquired a 22 percent stake in Post Danmark, the state-owned Danish post office, for DKK1.27 billion (€171 million; $209 million).  

As part of the deal, a 2.5 percent stake is being held for an employee share programme for almost 22,000 employees with an additional 0.5 percent reserved for an incentive programme for senior staff.

The agreement resulted from more than two months of exclusive negotiations between CVC and the Danish Ministry of Transport and Energy. In order to reach that stage, CVC was understood to have beaten off competition from trade bidders including Germany’s Deutsche Post and the Netherlands’ TPG.

I’m confident that CVC Capital Partners will add extra momentum to Post Danmark’s development as an international operator

Flemming Hansen, Danish Minister for Transport and Energy

“I’m confident that CVC Capital Partners will add extra momentum to Post Danmark’s development as an international operator,” said Flemming Hansen, Minister for Transport and Energy. “Such momentum is essential if Post Danmark is to retain maximum independence over the next few years as the European postal sector goes through deregulation.”

Following the deal, Peter Tornquist, senior managing director with responsibility for CVC’s Nordic business, and Soren Vestergaard-Poulsen, managing director of CVC Denmark, will join Post Danmark’s board of directors.