13 February 2024 , 13:02
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Courier giant Yodel has been rescued at the eleventh hour by a consortium led by rival operator Shift, fending off potential administration.
On Tuesday Yodel announced it was acquired by new consortium YDLGP, involving Jacob Corlett, founder of logistics firm Shift, and investment bank Solano Partners. This change secures "thousands of UK jobs" at Yodel, the incoming owners assured.
Last week it emerged that Yodel's previous owners, the Barclay family, were in search of bidders. Talks over this deal between the Shift-led group and Yodel have been ongoing since last summer.
With major clients like Argos, Very.com, Vinted, and Wren Kitchens, Yodel boasted earnings of £561.8 million last financial year. YDLGP will not only oversee Yodel but also gain complete command over Shift. Amidst fresh success, Shift recently acquired Tuffnells brand as it stumbed toward administration.
Yodel's chief executive officer, Mike Hancox, expressed said: "We're extremely excited to begin the next chapter of Yodel's journey, leveraging the scale of our business with the support of new shareholders and the future benefits of the Shift technology platform. Our customers have always been our priority and the transaction announced today allows us to ensure continuity for them, as well as our employees and wider stakeholders."
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Shift's CEO, Jacob Corlett, shared: "I am incredibly proud of what we have built at Shift in the last few years, rapidly scaling our tech-logistics platform, and M&A (mergers and acquisition) has been a big part of that success. At the heart of this merger is Shift's revolutionary AI-driven technology platform, promising a future where efficiency and automation become the backbone of logistics operations."
Jon Edirmanasinghe, founding partner of Solano, said: "We believe there is a fantastic opportunity to harness the strong brand and scale of Yodel in the UK and take further market share with the support of fresh capital and the innovative technology provided by the Shift team."