Deutsche Post World Net completes acquisition of Exel

Deutsche Post World Net completed the acquisition of UK logistics company Exel plc, becoming the global No. 1 in sea freight, ocean freight and contract logistics.

Just one month after Exel's shareholders welcomed the offer, the company's equity capital was transferred in its entirety to Deutsche Post World Net. The combination of the two companies creates a group with some 500,000 people and about 55 billion euros in annual sales.

"This acquisition marks a historic step for Deutsche Post World Net. By bringing together these two powerful, high-quality organizations, we are creating the largest logistics company in the world. Our Group will set the future pace in the forwarding and supply chain industries, enabling us to serve even better the global needs of our customers," said Deutsche Post Chief Executive Officer Klaus Zumwinkel.

The future structure of Deutsche Post World Net's enlarged logistics division has already been confirmed and top management positions filled. Exel Chief Executive Officer John Allan will run the combined division, which will employ around 150,000 people, be headquartered in Bracknell, near London, and operate under the DHL brand.

Upon completion of the Exel transaction, Deutsche Post World Net is raising its 2005 target for operating earnings (EBIT).

The company now expects EBIT for the 2005 business year, excluding Exel, to reach at least 3.7 billion euros. The previous target was operating earnings of at least 3.6 billion euros.