When US company Zenith Logistics announced a merger with DHL, it was the latest in a series of mergers in the industry
Posted On July 12, 2021
NEW YORK (AP) As the US Postal Service moves to a new, less-unionized workforce, it is finding ways to boost profits and make money.
The Post’s new parent company Zenit Logistics will merge with a mail delivery service this week, in the biggest merger in the post office’s history.
The Post will pay $50 million to acquire Zenith, a company that makes delivery services for the US military and government.
Zenith also sells mail-order services.
The deal was announced on Monday and will close on June 1.
The move by Zenith is the latest twist in a relationship that began in the 1980s when DHL acquired the U.S. Postal Service and started using Zenith’s delivery vehicles.
The companies became known as DHL-Zenith, the former for its work on military aircraft, and Zenith-DHL for its military work.DHL was already working on its own delivery vehicles, and it was looking for an easy way to combine them into a single company, said Peter Wessel, a partner at DHL’s global logistics firm.
Zenit would be the one to build the vehicles.
Wessel said that Zenit’s new company would have a $100 million cash infusion from DHL.
ZeniTec, a division of DHL Zenith Holdings LLC, would take over operations.
The deal will increase DHL shipments to the US by about 8% to about 15 million letters per day, according to a post-transaction statement.
The company will be renamed Zenith.
The merger with Zenith will increase Zenith revenues by about $50.5 million to $7.3 billion, the Post said in the statement.
It said Zenith plans to use the proceeds to expand its delivery business, including in the U, Europe and Africa.
Zenith’s new business will focus on delivering letters to military installations and the Department of Defense.
In addition, the merged company will focus its efforts on delivering packages for international markets, such as India, Japan and Australia.
The company also said it plans to sell Zenith mail-in delivery and mail-return services.
ZenigTec will take over the delivery of packages to the U and other countries, and the combined company will also handle delivery of international packages.
The merged company has also created a subsidiary called Zenith Services LLC, which will focus more on the business of shipping packages to military bases and other military-related areas.
The new company will help with shipping and logistics of military packages, and will also develop technology that will make the delivery process more efficient, the statement said.
Zeniths new business also will focus in Asia and Africa, and DHL said it will develop and deliver mail-forwarders to these regions.
The merged company expects to be able to make some direct payments to its customers, the company said.
The U.K. Post Office said in a statement that the merger with a U.A.E. competitor, Zenith Delivery Services Ltd., is the result of a strategic partnership between Zenith and the U-K Post Office, which was founded in the 1960s.
The post office is currently under a U-Bahn loan that is expected to be repaid in 2020.
Zeniths merger with the new company is expected by some analysts to increase the size of the U.-K loan, which is expected increase the costs of operations, the U Post said.
A separate Reuters/Ipsos poll of more than 1,400 U.k. consumers found that nearly half of them said the merger would make the postoffice more competitive.