bne IntelliNews – Czech e-commerce group Packeta buys the leading Hungarian parcel delivery service provider

A consortium of financial investors, which also includes the Czech parcel carrier Packeta, acquired the peer company Foxpost from its Hungarian owners, the website of the state news agency reported MTI June 12.

Wallis Group and Trueway (formerly Finext) sold their shares in the leader of the Hungarian parcel delivery market to the consortium of CVC Capital Partners and EMMA Capital Group.

Financial details of the transaction were not disclosed. The deal is expected to be finalized this year, pending regulatory approval from the European Commission and the competition watchdog.

Foxpost, which started as a startup in 2014, was the first parcel delivery service provider on the Hungarian market with 62 in-house machines. It currently operates over 1,200 vending machines, has thousands of e-commerce partners and delivered almost 10 million packages last year.

Packeta founded its Hungarian subsidiary in 2019 and was the fourth-largest player last year with a 15% market share, according to market researcher GKID. At the beginning of 2023, the fast-growing Czech regional e-commerce service provider presented ambitious expansion plans in Hungary. It planned to expand the network to over 3,000 self-service and stationary points.

The financial data of both companies paints a clear picture of the market’s explosive growth. Foxpost saw net sales double to HUF 8.2 billion (€21 million) in 2023, five times higher than in 2020. The operation saw a profit of HUF 300 million after a loss of HUF 1.3 billion in 2022.

Packet Hungary’s revenues last year were only slightly lower than those of its competitors. Turnover increased from HUF 5.6 billion in 2022 to HUF 8.1 billion. The company ended operations in the black, recording a profit of HUF 340 million compared to a loss of HUF 475 million in the previous year.

The Foxpost example is a real success story of a Hungarian startup. Wallis and co-investor Trueway have helped grow the company to a size that has now attracted the attention of international investors, Wallis Asset Management CEO Gyula Mezo said in a press release.

Adam Bengyel, CEO and co-founder of Foxpost, emphasized the importance of the solid experience provided by previous owners Wallis and Trueway, and added that the change in ownership supports their growth goals.

CVC is a global equity and investment fund manager operating in Europe, Asia and the United States, managing investments worth EUR 177 billion. The turnover of the 125 companies in which CVC has shares reached EUR 100 billion last year.

The private investment holding company EMMA Capital was founded in 2012 by Czech billionaire Jirí Smejc. In addition to the EU market, the company also operates in Asian markets, its investments focus on retail and customer-oriented companies.