Parcel carrier Yodel has been acquired by YDLGP Limited, a newly formed company backed by a Shift-led consortium, to create a “super scale logistics platform”.

YDLGP is backed by a consortium of investors, including Solano Partners Ltd, an independent boutique investment bank that also advised on the acquisition, as well as the leadership team behind Shift, the rapidly growing UK-based logistics platform, including its founder, Jacob Corlett.

Yodel’s customers include some of Britain’s biggest retailers, such as Very, Boden, Zalando, and Vinted. For the year ended December 31, 2023, the company generated 561.8 million revenue.

The parcel company also confirmed that its new owner YDLGP has agreed terms to acquire the entire issued share capital of Shift, the tech logistics scale-up that acquired and relaunched Tuffnells in June 2023.

Yodel and Shift to create a “super scale logistics platform”

Upon completion, the enlarged group will form a “super scale” logistics platform serving both the parcels market through the Yodel business and larger, irregular dimensions and weights freight through the Tuffnells brand. Shift’s AI-driven cutting-edge technology platform would then become the platform that brings automation and efficiency to both businesses.

Mike Hancox, chief executive of Yodel, said in a statement: “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.”

Jon Edirmanasinghe, founding partner of Solano, added: “We believe there is a fantastic opportunity to harness the strong brand and scale of Yodel in the UK and take further market share with the support of fresh capital and the innovative technology provided by the Shift team.

“We’ve seen the Shift team successfully acquire and relaunch the Tuffnells business and believe that forming the enlarged group to house all three creates a disruptive logistics powerhouse.”