GEODIS signs an agreement to acquire Keppel Logistics

0

GEODIS, a global freight forwarding and logistics services provider based in Levallois-Perret, France, GEODIS, announced this week that it has signed a binding agreement to acquire Keppel Logistics, a Singapore-based contract logistics services provider.

Financial terms were not disclosed, but various media reported the purchase price to be $80 million. GEODIS officials said the acquisition is subject to regulatory review and approvals, which are expected to be obtained by the end of the second quarter. They added that GEODIS and Keppel will operate as independent companies and manage their business as usual during the interim period.

Keppel has nearly 500 employees and a strong presence across Southeast Asia, according to GEODIS, which ranks in the top five Singapore-based contract logistics service providers. It has over 200,000 square feet of warehouse space in Singapore, Malaysia and Australia. Its service portfolio includes end-to-end B2B and B2C logistics solutions, from warehousing to last-mile delivery, with strong skills in omnichannel e-commerce service offerings, through its growing UrbanFox platform.

GEODIS said the acquisition will significantly increase the company’s contract logistics footprint and its e-commerce fulfillment services in Singapore and Southeast Asia. And he added that it was a major milestone in his strategic roadmap for the Asia-Pacific region, where he currently employs 3,700 people at more than 76 locations. He also noted that the acquisition will strengthen GEODIS as a leading logistics services provider, further expanding its footprint by adding to recent investments in contract logistics sites in India, South Korea and Australia.

“As one of the leading logistics providers, we are constantly looking for ways to evolve the region’s supply chain and that of our customers. [e-commerce] ecosystem,” said Onno Boots, CEO of GEODIS Asia Pacific, in a statement. “The acquisition will strengthen our contract logistics and digital omnichannel capabilities, enhance our end-to-end logistics solutions and bring greater value to customers across the region. By enhancing our e-commerce services, we will empower brands to seamlessly and efficiently expand their online presence to address supply chain challenges to accelerate their growth in this region.

And Thomas Pang, CEO of Keppel Telecommunications & Transportation, said in the same statement that for more than 50 years, Keppel Logistics has been providing personalized integrated logistics in Singapore.

“We are confident that the integration of Keppel Logistics into the GEODIS framework will help accelerate the growth of Keppel Logistics, allowing it to grow and deliver even better value propositions to both its customers and internal stakeholders. said Pang.

Evan Armstrong, president of Milwaukee-based supply chain consultancy Armstrong & Associates, said ML that this acquisition strengthens the Geodis network in Southeast Asia and more particularly in Singapore.

“It includes the operations of Keppel Logistics in Singapore, Malaysia and Australia, as well as UrbanFox, an e-commerce service provider with a network of contracted last-mile delivery drivers in Singapore, Malaysia and Vietnam.” , did he declare. “This sale is part of Keppel Telecommunications & Transportation’s long-term plan (2030) to exit third-party logistics. For the 2021 financial year, the Keppel Logistics entities sold to GEODIS recorded a net loss after tax of 5.2 The Geodis transaction will not include Keppel’s logistics operations in China, which include: Jilin Food Zone Logistics Park, Tianjin Eco-City Distribution Center and Keppel Wanjiang International Coldchain Logistics Park. no longer Keppel’s stakes in Keppel Puninar Logistics in Indonesia and Indo-Trans Keppel Logistics in Vietnam Keppel Logistics has signed a non-binding term sheet to sell its 51% stake in Indo-Trans Keppel Logistics in Vietnam to In Do Trans Logistics Corporation, its existing joint venture partner.In 2019, Keppel divested its operations in Foshan and Hong Kong.

Ben GordonManaging Partner of Cambridge Capital, an investor in niche supply chain leaders, and also Managing Partner of BGSA Holdings, an M&A advisory firm specializing in the transportation, logistics and technology sector. supply chain, said the acquisition of Keppel by Geodis illustrates the continued global convergence in logistics M&A.

“Geodis, France’s largest logistics provider and a European power, is strengthening its position in Asia with the purchase of Singaporean company Keppel,” he said. “I think we’ll see more global convergence this year.”

About the Author

Jeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics management, Modern material handlingand Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine where he covers all aspects of the supply chain, logistics, freight forwarding and material handling industries on a daily basis. Contact Jeff Berman


Source link

Share.

Comments are closed.