NEW YORK - Apollo Global Management, Inc. (NYSE: NYSE:APO) has entered into an agreement through its managed funds to acquire Evri, one of the United Kingdom's leading parcel delivery companies. The transaction is expected to be finalized in the third quarter of 2024, with financial details remaining undisclosed.
Evri, formerly known as Hermes UK, has seen significant growth since its rebranding in 2022 and has established itself as a substantial player in the parcel delivery sector, particularly catering to the e-commerce industry. With an extensive network reaching nearly every UK household, Evri currently serves over 12 million customers weekly.
Apollo Private Equity Partner Alex van Hoek expressed enthusiasm for the acquisition, noting Evri's strong market position, innovative delivery model, and infrastructure designed for eco-friendlier operations. He emphasized the potential for continued success and expansion under Apollo's stewardship.
Martijn de Lange, CEO of Evri, highlighted the company's scalable efficiency and commitment to timely and sustainable delivery. He expressed gratitude to Advent International for their past support and voiced excitement about the future growth opportunities with Apollo.
Michael Saffer from Apollo added to the sentiment, pointing to the firm's substantial experience in the logistics and transportation sector and its readiness to support Evri's business momentum with capital and strategic expertise.
Apollo, a global alternative asset manager with approximately $671 billion in assets under management as of March 31, 2024, has a history of more than 30 years in investment. The company's strategies range from investment grade to private equity, with a focus on yield, hybrid, and equity investments. Apollo also operates Athene, a retirement services business offering retirement savings products and institutional solutions.
The acquisition of Evri is in line with Apollo's extensive record in the transportation and logistics industry, aiming to enhance the company's portfolio with Evri's established market presence and innovative business model. Legal counsel for the transaction is provided by Sidley Austin LLP.
This news is based on a press release statement from Apollo Global Management, Inc.
In other recent news, Apollo Global Management has been the subject of several significant developments. The company has seen its stock price target upgraded to $129.00 from $117.00 by Jefferies, based on a reassessment of its second-quarter performance and future expectations.
Despite a minor decrease in distributable earnings (DE) per share estimates for the second quarter of 2024, Apollo's year-over-year growth projections remain positive.
Apollo, in collaboration with Kyndryl Holdings, is considering a potential acquisition of DXC Technology (NYSE:DXC), a move that could value DXC Technology's shares between $22 and $25. In addition, Apollo has recently priced a $750 million senior notes offering with a 5.800% interest rate due in 2054, with net proceeds estimated at approximately $743.4 million to be allocated for general corporate purposes.
The investment firm has also launched another offering of senior notes, guaranteed by several of its subsidiaries. Lastly, Apollo is reportedly in talks with Sony (NYSE:SONY) Pictures Entertainment to acquire and split Paramount Global for $26 billion. These are the recent developments involving Apollo Global Management.
InvestingPro Insights
As Apollo Global Management (NYSE: APO) gears up to finalize the acquisition of Evri, the company's financial health and market performance are of considerable interest to investors. According to InvestingPro data, Apollo boasts a robust market capitalization of $69.26 billion USD. The firm's Price to Earnings (P/E) ratio stands at 13.76, reflecting investor expectations of future earnings potential. Notably, Apollo has experienced a remarkable revenue growth of 120.25% over the last twelve months as of Q1 2024, indicating a strong upward trajectory in its financial performance.
InvestingPro Tips highlight Apollo's position as a prominent player in the Financial Services industry, with a history of maintaining dividend payments for 14 consecutive years. This consistency underscores the firm's financial stability and commitment to shareholder returns. Moreover, Apollo's stock price movements have been quite volatile, which could present both risks and opportunities for traders and investors alike.
For those considering an investment in Apollo, it's worth noting that analysts have revised their earnings expectations downwards for the upcoming period, and anticipate a sales decline in the current year. Yet, the firm's liquid assets exceed its short-term obligations, suggesting a solid financial footing. With Apollo trading near its 52-week high and at a high Price to Book multiple of 5.17, potential investors should assess market conditions and the company's strategic initiatives, such as the Evri acquisition, when making investment decisions.
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