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Parcel delivery company Yodel is to be sold to a consortium that includes the owner of logistics group Tuffnells in the latest unwinding of the debt-laden financial interests of the Barclay family.
The transaction, announced on Tuesday, follows months of uncertainty about the future of Yodel, which the Barclay family, owners of the Daily Telegraph newspaper, put up for sale last year.
The family has been seeking to raise cash in its tussle with lenders including the Lloyds Banking Group, which last year took control of the Telegraph for several months.
Yodel chief executive Mike Hancox said the company was “extremely excited” to begin the “next chapter” in the group’s journey.
“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,” he added.
The group, which is backed by about £180mn of debt provided by HSBC, is to be bought by a new company called YDLGP.
YDLGP was backed by a consortium including Solano Partners, an independent investment bank, and Shift, a UK logistics provider, Yodel said.
Shift, founded by Jacob Corlett, a 30-year-old entrepreneur, last year took over the brand of Tuffnells, a logistics provider, after it collapsed into administration.
YDLGP would also buy Shift and turn the merged companies into a “super-scale” logistics platform, Yodel said.
Tuffnells specialises in moving loads of larger and irregular sizes and weights, in contrast to Yodel’s specialism in the small parcels market.
The new, merged group would use Shift’s technology to bring “automation and efficiency” to both businesses, Yodel said.
“The Shift leadership team will provide significant technology and operational expertise, having successfully turned around the fortunes of the Tuffnells brand,” it added.
A person familiar with the transaction said that Yodel was transferring to the new owner free of its debt, which would remain with the previous owner.
Yodel said it had revenue of £562mn revenue for the year to December 31 2023 and was expanding its share of the UK delivery market.
The Shift-led consortium had been in discussions about the transaction since the middle of last year, Yodel said.
Yodel was originally the delivery arm of Very Group and originally operated under the name Home Delivery Network.
The Barclay family has been in discussions about a range of their financial interests, including the Very Group, which owns a variety of brands including Littlewoods.
The talks are part of complex efforts by lenders to recover loans granted to the family’s interests. The process led Lloyds Banking Group last June to put the Telegraph Media Group into administration.
The family recovered control of the Telegraph in December as part of a consortium led by Abu Dhabi-backed RedBird IMI seeking to take over the group. The transaction faces competition and national security inquiries before it can go through.
