Yodel rescued in deal led by Shift
Yodel, the struggling parcel delivery company, has been rescued in a deal led by rival operator, Shift.
The business has been acquired by YDLGP, a newly formed company that is backed by Shift’s leadership team and a consortium of investors, including investment bank Solano Partners, which also advised on the transaction. The deal will also see YDLGP acquire Shift’s entire share capital.
The transaction is likely to safeguard thousands of UK jobs.
Yodel said the enlarged group will form a ‘super scale’ logistics platform serving both the parcels market through the Yodel business, and larger, irregular dimensions and weights freight through the Tuffnells brand, which Shift acquired and relaunched in June 2023.
Shift’s AI driven technology platform will become the platform for both businesses while it leadership team will provide technology and operational expertise.
Yodel makes over 190 million deliveries annually from its 50 sites and its clients include the likes Very, Wren Kitchens, Gousto, Vinted, Whistl and Argos.
Mike Hancox, chief executive 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.”
Jacob Corlett, chief executive of Shift, added: “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 has been a big part of that success. I look forward to working with Mike and the Yodel team, and with the support of YDLGP, continuing our journey building and scaling logistics through technology.”