TNT Express is to sell its overnight distribution subsidiary TNT Innight to the private equity firm Special Situations Venture Partners III (SSVP).
The company says the sale is motivated by TNT’s strategy to concentrate resources on strengthening its core express delivery activities.
TNT Innight provides night-time distribution services in Europe to companies in sectors such as automotive, agriculture, and engineering machinery.
Because of the specificity of its service, TNT Innight manages its own distribution network, distinct from that of TNT Express. It employs about 1,300 people across 40 facilities in Northern and Central Europe.
TNT Express and TNT Innight have some customers in common, in the automotive, engineering machinery, and agriculture sectors. TNT Express says it will continue to support these customers and industry sectors as before.
SSVP says it intends to provide TNT Innight with the financial resources required to achieve its growth plans.
TNT Innight will continue to operate as a standalone business, under a new brand name. The sale will not affect the terms and conditions of TNT Innight’s agreements with customers and suppliers.
Pending customary conditions, the transaction is expected to close in the third quarter of 2016.