Media companies will create a strong, Danish-owned player in a rapidly growing distribution market

JP/Politikens Hus, Jysk Fynske Medier and Berlingske Media has entered into an agreement to merge the two distribution companies Dansk Avis Omdeling (dao) and Bladkompagniet in order to create a strong, Danish-owned distributor who can ensure Danes efficient delivery of newspapers, packages and mail at home - 365 days a year.

Where the daily papers distribution network previously focused on newspapers, the newspaper couriers have in recent years increasingly brought packages, letters and magazines to the Danes. At dao, parcel delivery today accounts for more than 50% of the turnover, making dao the third largest player in the market, after PostNord and GLS.

“The ambition is clearly to develop an even stronger and even more competitive alternative to the other players in the distribution market. At the same time, it is a key objective also in the future, to ensure competitive delivery of newspapers of highest quality. We are convinced that the fusion will give us the opportunity to seize the potential in the rapidly growing distribution market and make us even more able to compete with the large, international players ", says Dorthe Bjerregaard-Knudsen, Chairman of the Board of both dao and Bladkompagniet and COO in JP / Politikens Hus.

on the assumption that the competition authorities approval, the new, merged company will have an annual turnover of approx. Dkr. 1.5 billion. JP / Politikens Hus will become the majority shareholder with 51%. of the shares, while Jysk Fynske Medier will hold a share of 32%. and Berlingske Media a share of 17%.

“Based on the newspaper network's unique position, we have the opportunity to create a solid, Danish-owned player, which can also in the future ensure the Danes stable and safe delivery at home. With this fusion, we will be much more able to further develop the distribution solutions of the future and improve the quality experience with the eternal goal of delivering the right product, in the right place and at the right time at the sharpest price ", says Bjarne Werner Munck, vice chairman of dao and Vice CEO of Jysk Fynske Medier.

To meet the high demand, dao has already in 2020 decided to invest in a new, large parcel sorting system and the construction of a new terminal building in Fredericia. Soon, the company also plans to offer pick up of return packages at private addresses.

But it's not all about newspapers and packages. Also when it comes to letters and magazines, the new company will take up the battle.

“Bladkompagniet owns one of the country's most efficient letter sorting facilities, which makes us an obvious alternative for companies that need to send out large volumes of letters. With the fine-meshed newspaper network and not least because of our own developed electronic courier delivery system, we offer a distribution in a class of its own. The daily papers' distribution network is the only player today that can document when and where each letter is delivered ", says Michael Bjerregaard, who is a board member of Bladkompagniet and CFO of Berlingske Media.

The current director of dao, Morten Villberg, has been appointed CEO of the new, merged company, while Dorthe Bjerregaard-Knudsen will be chairman of the board. The company will be run in dao's name with Bladkompagniet as a subsidiary.
The fusion is awaiting the approval of the competition authorities.

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