March 11 (Bloomberg) -- TNT Express NV will sell its Dutch fashion operations ahead of a strategic revamp later this year.
TNT plans to sell the Dutch operations of TNT Fashion Group BV to Belspeed SA of Belgium and Turkey’s Netlog Logistics Group, pending regulatory approval and consultations with its works council, the company said in a statement today. The unit employs 660 people, and Hoofddorp, Netherlands-based TNT provided no financial details. TNT said in August that it was considering a sale of its fashion-logistics business in continental Europe.
The unit will continue to operate as a separate legal entity and no material job cuts are expected, TNT said, adding it expects the transaction to be completed at the end of the second quarter. TNT will retain its fashion operations in the U.K., which will be integrated into its U.K. and Ireland unit.
Chief Executive Officer Tex Gunning in February announced a new strategy to focus more on European overland transport while raising the savings target for the company’s efficiency program. In November, the company sold an unprofitable Chinese trucking unit.
TNT has suffered setbacks since United Parcel Service Inc. terminated a 5.16 billion-euro bid 14 months ago amid opposition from European Union regulators. The company tried to sell two freighter planes and its Brazilian unit. It said the prices offered were too low, prompting the company to keep both.
Gunning plans to provide details including financial targets for the strategy revamp in the the second half of 2014, after announcing plans to reorganize TNT’s regional structures, increase the contribution from clients in the automotive, industrial, health-care and high-technology industries and focus more on small and medium-sized enterprises.
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