Parcel delivery group Yodel has been saved from the brink of collapse by competitor Shift overnight.
Shift executives, including its founder Jacob Corlett, have formed a new company called YDLGP with merchant bank Solano Partners to acquire Yodel this morning.
Last week, it was reported that Yodel was preparing to fall into administration, risking over 10,000 jobs in the UK.
The firm, which is owned by the Barclay family, had reportedly lined up insolvency specialists Teneo to prevent the total collapse of the business.
Additionally, Yodel had accelerated its plans to find a buyer, with Cheshire-based The Delivery Group among the parties looking to make the acquisition.
It is expected that YDLGP will also acquire Shift, leading to a combined operation of the two, in what Yodel called a ‘super scale’ logistics platform. The two firms have been in discussion since mid-last year.
Yodel works with retailers like JD Sports and Argos, and last year added clients such as eBay, making more than 190 million deliveries every year.
This weekend, it was reported that Evri’s private equity owners were prepping for a £2bn sale of the firm, leading to further consolidation within the industry.
Royal Mail has also been looking to expand, considering a bid for Czech parcel giant Packeta at the end of last year.
Mike Hancox, CEO of Yodel, told Sky News: “We’re extremely excited to begin the next chapter of Yodel’s journey, leveraging the scale of our business with the support of new shareholders and the future benefits of the Shift technology platform.
“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.”
Shift, founded by Corlett, previously acquired Movinga as it has expanded. It also acquired and relaunched Tuffnells last year.
Corlett told City A.M. in an interview three years ago that the firm’s asset light model freed it up to use revolutonary AI tech to speed up deliveries.