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DHL sells major Elan stake

29th August 1991, Page 12
29th August 1991
Page 12
Page 12, 29th August 1991 — DHL sells major Elan stake
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Which of the following most accurately describes the problem?

• DHL has sold a majority stake in Elan, its UK overnight delivery subsidiary, to Allegro Holdings for a sum rumoured to be less than £10m.

Elan, with an annual turnover of around £25m, has 16 nationwide depots with around 700 employees and operates a fleet of 260 Mercedes 308s and 814s. Its biggest market share is in the over-50kg parcels sector.

DHL's decision to off-load most of Elan, which has less than 5% of the overnight parcels service in the UK, comes with a declaration that domestic road haulage is no longer a core part of its business, although the company retains a profit-making German concern.

Allegro Holdings has appointed John Bintliff chairman of Elan. Bintliff is a director of Cleveland Davis, the American distribution consultancy which negotiated the deal between DHL and Elan. Until last year he was sales and marketing director of Securicor Omega Express.

Bintliff says the quality of Elan's next-day service "has been underrated in the past". He will co-ordinate marketing

and strategy, overseeing investment plans in network systems and information technology. As CM went to press Elan was in the process of recruiting a new sales director and managing director.

"Morale is high," says Bintliff. "Staff are pleased that the period of waiting is over."

Tags

Organisations: Cleveland Davis
People: John Bintliff

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