Struggling parcel delivery giant Yodel has been saved from collapse in a last-minute rescue deal led by rival firm Shift.
YDLGP, a newly formed company, struck the deal overnight in a move that will “ensure continuity” for customers and could safeguard thousands of jobs.
The new company is backed by a consortium of investors including Solano Partners, an independent boutique investment bank that also advised on the acquisition, as well as the leadership team behind logistics firm Shift, including its founder, Jacob Corlett.
Yodel’s new owner has also agreed terms to acquire the entire issued share capital of Shift. The deal follows Shift’s acquisition of Tuffnells’ assets in June 2023 and the relaunch of the brand.
The new owners will now push ahead with plans for the enlarged group to form a ‘super scale’ logistics platform, serving both the parcels market through the Yodel business, and larger, irregular dimensions and weights (‘IDW’) freight through the Tuffnells brand.
Jon Edirmanasinghe, founding partner of Solano, commented: “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. We’ve seen the Shift team successfully acquire and relaunch the Tuffnells business and believe that forming the enlarged group to house all three creates a disruptive logistics powerhouse.”
Yodel, previously owned by the Barclay family, makes 190+ million deliveries annually from its 50 sites and has a customer base that includes Very, Wren Kitchens, Gousto, Vinted, Whistl and Argos.
For the year ended 31 December 2023, Yodel generated £561.8m revenue but had struggled with profitability in a highly competitive marketplace.
Mike Hancox, CEO of Yodel, 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.”
According to reports, the owners of Yodel rival Evri are preparing the parcel delivery group for a £2bn sell-off. The Sunday Times said Evri’s majority owner Advent International was working with advisers from investment bank Rothschild to explore options.
