I Guess This Means Yellow is Not the New Brown
So the thinking went like this - DHL spent $1.05 billion in 2003 to buy Seattle-based Airborne Express to break into the large US parcel delivery business. After spending several billion dollars to make yellow the new brown, DHL has finally decided throwing good money after a cr^ppy idea is no longer worth it and is packing it in (sorta). They’ve racked up losses of $3B in the past four years.
They are paying UPS a billion dollars a year to take over much of their infrastructure and deliveries in the USA. So DHL’s empire building M&A deal has ended up benefiting the guys they were trying to displace.
Just another M&A success story.
Tags: DHL, M&A disaster, UPS
