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DHL Buys IDS Fulfillment to Beef Up US E-Commerce Division

Published 7 hours ago4 minute read

Third Deal of 2025 Further Bolsters High-Margin Operations

DHL distribution hub

The deal is the second U.S. e-commerce acquisition for DHL in 2025. (DHL Supply Chain)

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DHL Supply Chain bought IDS Fulfillment for an undisclosed sum, continuing to fortify the high-margin engines of its long-term growth plan.

DHL, which ranks No. 13 on the Transport Topics Top 100 list of the largest logistics companies in North America and No. 5 on the TT Top 50 Global Freight Carriers list, aims to boost its revenue by 50% by 2030 with a focus on fast-growing and high-margin niche markets.

The acquisition of Plainfield, Ind.-based e-commerce fulfillment and retail distribution logistics provider IDS is intended to boost DHL’s reach among small and midsize customers.

IDS operates over 1.3 million square feet of U.S. multi-customer warehouse and distribution space facilities in Indianapolis, Salt Lake City, Atlanta and Plainfield. DHL said it intends to retain local executives.

“E-commerce has been a growth driver for DHL in recent years and is an important focus in our Strategy 2030 agenda,” said Patrick Kelleher, CEO of DHL Supply Chain North America. “The acquisition of IDS Fulfillment not only expands our operational footprint but also ensures small and midsized companies have access to our state-of-the-art logistics solutions designed for their specific requirements.”

The deal is the second U.S. e-commerce acquisition for DHL in 2025. In January, DHL acquired Inmar Supply Chain Solutions, a division of Inmar Intelligence that specializes in returns solutions for the retail e-commerce industry. DHL said the deal would make the company the largest provider of reverse logistics solutions in North America.

“With global e-commerce set to grow at a [compound annual growth rate] of 8% per annum by 2029, DHL is targeting investments that further expand our capabilities to meet the needs of this growing segment and make our network and solutions easily accessible to businesses of all sizes. IDS Fulfillment complements our existing DHL Fulfillment Network, enhancing our ability to offer seamless global e-commerce solutions with local expertise and reach. [This is] especially timely as more multinational organizations are looking to establish fulfillment capabilities in North America,” said Oscar de Bok, DHL Supply Chain global CEO.

“E-commerce has been a growth driver for DHL in recent years and is an important focus in our Strategy 2030 agenda,” Kelleher said. (DHL Supply Chain)

Health care logistics is seen as another high-margin growth area to target, and DHL inked a deal in this area at the end of March and announced a buildout of its operations in the segment.

DHL bought white-glove logistics specialist Cryopdp from Nashville, Tenn.-based Cryoport on March 31 for an undisclosed sum. Cryopdp specializes in logistics for clinical trials, biopharma, and cell and gene therapies.

Based on the outskirts of Paris, Cryopdp handles more than 600,000 shipments per year, with customers and patients in over 135 countries.

DHL said the deal would enhance its capabilities in the specialty pharmaceuticals logistics arena and support plans to become a leader in life science and health care logistics by 2030.

Those plans will also be supported by more than $1.1 billion in spending over the next five years boosting DHL’s North America health care logistics operations, the company said less than two weeks later.

The North American upgrades are part of a nearly $2.3 billion expansion of sector capabilities globally.

The company’s existing life sciences and health care business contributed more than $5 billion in global revenue in 2024.

Investment in the health care sector — including medical devices, clinical trial, biopharma, and cell and gene therapy logistics — is set to enhance infrastructure and technology across storage, order fulfillment, distribution, global shipping and last-mile delivery under a new DHL Health Logistics brand.

Much of the spending will be on establishing cross-divisional Good Distribution Practices-certified “Pharma Hubs” through multi-temperature shipment lanes, cold chain capacity expansion at existing facilities, buying more temperature-controlled vehicles and enhanced packaging, the company said April 7.

DHL Group operates almost 600 sites, hubs and warehouses across around 130 countries dedicated to life sciences and health care logistics.

Both the health care and e-commerce expansions are part of Strategy 2030.

Alongside adding revenue, DHL is also looking to cut its costs by $1.1 billion and increase efficiency as part of its 2030 target.

DHL’s German letters and parcel unit Deutsche Post revealed plans March 6 to cut 8,000 jobs by the end of 2025, just two days after signing a 5% pay deal.

And in February, Standard Forwarding Freight bought the assets of Midwest less-than-truckload carrier Standard Forwarding from DHL for an undisclosed sum. Standard Forwarding Freight focuses on next-day and second-day freight services.

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