German logistics firm sennder renews $2.5 billion joint venture with Poste Italiane

By Emma-Victoria Farr

FRANKFURT (Reuters) - German digital freight forwarder sennder is renewing its joint venture (JV) with Poste Italiane with the aim of generating 2.3 billion euros ($2.5 billion) in revenue over the next 10 years, sennder CEO David Nothacker said on Wednesday.

The venture, known as sennder Italia, achieved earnings before interest, taxes, depreciation and amortisation (EBITDA) of 4.5 million euros in 2022, cutting costs for Poste Italiane with its technology that reduces manual operations and unnecessary mileage for freight.

The business ensures parcel and mail trucks are fully loaded between sorting and distribution hubs in Italy. The partnership illustrates the need for carriers and technology companies to club together to cut costs as the sector comes under increasing pressure to reduce carbon dioxide emissions.

The joint venture deal was struck in 2019, following a chance meeting in Italy, which led to the partnership with the Italian postal operator. The support of state-backed Poste Italiane's CEO was critical, Nothacker told Reuters.

As part of the renewal agreement, sennder will increase its holding in the joint venture to a majority 75% stake, while Poste Italiane will hold 25%. In addition, Poste Italiane will increase its ownership in Berlin-based sennder to around 10%.

The logistics sector has seen spurts of mergers and acquisitions despite a global slowdown of deals, including the recent sale of transport management software firm Transporeon to industrial technology business Trimble in an all-cash transaction valued at 1.88 billion euros.

Germany's sennder has operations across Europe, including in the Netherlands, Baltic countries, France and Poland. To date, the company has raised more than $350 million and is valued in excess of $1 billion, according to a company factsheet.

($1 = 0.9107 euros)

(Reporting by Emma-Victoria Farr, editing by John O'Donnell and Emelia Sithole-Matarise)