(Bloomberg) -- Otto Group is planning to sell the French operations of its parcel delivery service Hermes Group, potentially adding to a string of deals tied to this year's online shopping boom, people familiar with the matter said.
The German e-commerce company is working with Rothschild & Co. on the divestment of the business, which has attracted bids from private equity firms and logistics companies, the people said. Otto is seeking a valuation of more than 500 million euros ($588 million) for the unit, according to the people, who asked not to be identified because the information is private.
Hermes was founded in the 1970s as the exclusive delivery service for Otto and has grown into one of Europe's biggest parcel delivery companies with more than 15,500 employees, according to its website. As well as France, Germany and the U.K., the company also serves customers in Austria and Russia.
Otto has been selling down some of Hermes's businesses as it focuses on its core e-commerce operations. In August, private equity firm Advent International acquired a 75% stake in Hermes U.K. and a 25% interest in Hermes Germany.
Otto could decide to keep a stake in the French business in any deal, the people said. Representatives for Otto and Rothschild declined to comment.
Appetite for delivery services is strong amid the boom in online retail, a trend that has been amplified this year by the coronavirus pandemic forcing people to stay at home and shop from their computers. Private equity firms have been seeking to cash in on the trend.
Advent is considering a sale of Polish postal locker provider InPost SA, Bloomberg News reported last month. In the U.K., Clipper Logistics Plc, which supports the e-commerce operations of retailers from Asos Plc to Superdry, is attracting interest from firms including Cinven, people familiar with the matter have said.
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