UK Mail Digital’s MBO From DHL Parcel UK

In UK Hill Dickinson, advised on the matter.

Hill Dickinson advised Mercia Asset Management Limited with a team including Jonathan Gillow (Picture – Corporate M&A), Alasdair Mackinnon (Finance).

UK Mail Digital, a leading hybrid mail specialist, has announced the successful completion of a management buyout from parent company DHL Parcel UK.

The deal, led by UKMD managing director Andy Barber, aims to make the company into an independent leader in hybrid and digital mail services. UKMD, which was launched in 2009, is already a dominant player in the market.

The MBO was backed by Mercia Asset Management’s private equity business, which will take a stake in the company. Finance facilities were provided by Thincats, a leading alternative finance provider to mid-sized SMEs.

Hybrid mail is mail delivered using a combination of electronic and physical delivery in which digital information is transformed into a printed document as near to the final delivery address as possible. Benefits of the hybrid model include fast delivery, reduced postage costs and lower production.

Currently, less than 20% of the burgeoning hybrid mail market is handled by hybrid providers. The opportunity for UKMD to drive further growth as a standalone business that retains a strong supportive relationship with its former parent DHL, is therefore significant. Customers of DHL and UKMD will experience no disruption or change to any existing arrangements and services.

Further investment in market-leading product and service developments is expected to follow in the coming weeks.

Hill Dickinson’s Corporate team provided buy-side legal support throughout the transaction, led by partner Jon Gillow (Picture), senior associate Katy Oakes and associate Ben Correia de Sousa. Specialist advice was also provided by Alasdair Mackinnon and Alex Quinn (Banking), Stephen Betts (Tax), Elle Mackenzie (Commercial) and Nicola Brand (Employment).

Involved fees earner: Stephen Betts – Hill Dickinson; Nicola Brand – Hill Dickinson; Ben Correia de Sousa – Hill Dickinson; Jonathan Gillow – Hill Dickinson; Elle Mackenzie – Hill Dickinson; Alasdair Mackinnon – Hill Dickinson; Katy Oakes – Hill Dickinson; Alex Quinn – Hill Dickinson;

Law Firms: Hill Dickinson;

Clients: Mercia Asset Management Limited;

Author: Giulia Di Palma