American buyout giant Advent International, which acquired a 75% stake in Evri in 2020, is considering selling the company, The Sunday Times reports.
Advent saddled Evri with more than £1bn of debt before extracting a £762m dividend in 2022. Despite the heavy debt burden, Evri says it has been investing in its growth, including expanding capacity, improving IT infrastructure and improving customer service.
The potential sale of Evri comes as its smaller rival Yodel, owned by the Barclay family, faces financial difficulties and the possibility of collapse, The Sunday Times adds.
Evri has been described as a very effective competitor, having won most of Yodel’s major customers. However, Evri’s financial performance has been hit by a softening market and higher interest costs on its debt.
Despite the challenges, Evri has maintained a strong delivery record, with a high percentage of next day and standard deliveries made on time. However, it has come in for criticism in customer satisfaction surveys, tied for last place with Yodel.
The sale of Evri, if completed, would be another successful e-commerce investment for Advent, following its profitable stake in Polish parcel locker operator InPost.