By Tamas Csonka in Budapest
A consortium of financial investors, which also owns the Czech package carrier Packeta, has acquired sector peer Foxpost from its Hungarian owners, the parties informed state news agencyMTI on June 12.
Wallis Group and Trueway (formerly known as Finext) sold their stakes in the market leader of the Hungarian parcels delivery market to a consortium of CVC Capital Partners and EMMA Capital Group.
The financial details of the transaction were not released. The transaction is set to be completed this year, pending regulatory approval from the European Commission and the competitive watchdog.
Foxpost, which started as a startup in 2014, was the first parcel delivery service provider on the Hungarian market with 62 indoor machines. It currently operates more than 1,200 vending machines, has thousands of e-commerce partners and delivered nearly 10mn packages last year.
Packeta set up its Hungarian subsidiary in 2019 and, according to market researcher GKID, was the fourth-largest player with a 15% market share last year. In early 2023, the fast-expanding Czech regional e-commerce provider unveiled ambitious expansion plans in Hungary. It planned to expand the network to over 3,000 self-service points and brick-and-mortar pick-up points.
Financial data of the two companies provide a clear picture of the explosive growth of the market. Foxpost saw net sales double to HUF8.2bn (€21mn) in 2023, which is five times higher than in 2020. The operation booked HUF300mn in profit after a loss of HUF1.3bn in 2022.
Packeta Hungary’s revenues last year were only a tad below that of its peers. Turnover rose from HUF5.6bn in 2022 to HUF8.1bn. The company ended in the black, posting a HUF340mn profit compared to a HUF475mn loss in the previous year.
The example of Foxpost is a real Hungarian startup success story. Wallis, together with its co-investor, Trueway, helped build up the company to a size that has now attracted the attention of international investors, CEO of Wallis Asset Management Gyula Mezo was quoted as saying in the press release.
Adam Bengyel, CEO and co-founder of Foxpost, highlighted the importance of the solid background provided by the previous owners, Wallis and Trueway, and added that the change of ownership supports their growth targets.
CVC is a global capital and investment fund manager operating in Europe, Asia and the United States and manages €177bn in investments. The turnover of 125 companies, in which the CVC has stakes, reached €100bn last year.
The private investment holding EMMA Capital was founded in 2012 by the Czech billionaire Jirí Smejc. In addition to the EU market, the company is also active in Asian markets, its investment focus is on retail and customer-oriented companies.
