UK Hauliers Join Forces

Specialist Logistics Services Ltd (SLS) is a UK freight forwarder that offer a turnkey service for the movement of out of gauge and abnormal cargo and has been successfully delivering to clients old and new, for many years. It says it prides itself in offering bespoke solutions for the movement of all challenging cargo.

Following a long and successful career in project cargo, its owner and founder Martin Burgess decided to retire from the board with effect from April this year.

Reimer Ltd, which also owns Doherty Heavy Haulage, is now the new owner of SLS and its partner company Martin Burgess Logistics Ltd.

The new Managing Director of SLS, Hasan Huseyin, says: “I’m excited about the new takeover. I have a fantastic and knowledgeable team working alongside me and we all look forward to the bright future ahead.” Huseyin will also remain at the helm of Doherty heavy haulage.

Luton-based Doherty is well established in the field of heavy haulage with an ever-growing fleet of low-loaders, variety of specialist trailers and equipment.  SLS and Doherty have worked together seamlessly for many years and described the takeover and merge of skills as an obvious choice and a smart business move.

This new takeover will enable SLS to directly utilise Doherty’s fleet of vehicles, offering more competitive rates on UK moves. However, both companies are still running independently.

Martin Burgess concludes: “I will always be indebted to my former directors and current colleagues for making the business the success it has become and the sheer hard work and effort has paid off in the end, allowing for the business to have bright future ahead of it under Reimer’s control.”

 

USA Storage Systems Acquisition

Apex Companies, headquartered in Oak Brook, Illinois, has announced that Engineered Handling, Inc, a leading storage and warehouse equipment supplier based in Charlotte, North Carolina will join the Apex family of companies to support growing customer demand in the Mid-Atlantic and Southeast states. The combined company—operating under Apex Warehouse Systems—unites the talents and capabilities of Engineered Handling’s existing staff with the sales, design, engineering, automation, and rack repair services of Apex Companies.

Apex Companies is a full-service storage and material handling equipment provider – from individual pallet rack systems, forklifts, and lift equipment to full-scale warehouse design, integration, and automation; Apex offers customers one-stop-shop expertise.

The team from Engineered Handling has built a reputation as a premier material handling systems integrator offering warehouse design, engineering, installation, and training services to clients throughout the Mid-Atlantic and Southern states. In addition, they maintain a sales and stocking facility in Hickory, NC, and a sales office in Greenville, SC. These locations will join the existing Apex offices in Oak Brook, IL, West Chicago, IL, Aurora, IL, and Denver, Colorado. All Engineered Handling employees will be joining Apex.

“We have known and worked with the Apex team for many years and have appreciated their high level of expertise and customer service. We look forward to becoming a part of the Apex family and continuing to grow the combined company in the future, said Jerry Welsh, President of Engineered Handling, who will join the Apex team. With its extensive footprint in the automotive parts and tool crib market, Engineered Handling expands Apex’s capability into this valuable sector. Additionally, the acquisition blends two active business units dedicated to used and overstock racking to expand the supply and affordability for customers throughout the U.S. The addition of Engineered Handling, coupled with last year’s acquisition of Alpine Equipment Co. of Denver, gives Apex a coast-to-coast footprint that will help propel the company’s national growth plans.

“Apex’s acquisition of Engineered Handling is a testimony to our plans to make Apex a truly nationwide company. The Mid-Atlantic and Southeast states are areas of tremendous growth in the warehouse and logistics market. We look forward to adding our capabilities to those of Engineered Handling to serve customers in this growing market,” noted Peter DeHaan, Principal, Apex Warehouse Systems. The merger was concluded on August 15th, 2022.

Forterro Expands with Acquisition of Wise Software

Forterro, a European provider of software solutions to more than 10,000 small and midsized industrial companies, today announced its acquisition of Wise Software (UK) Ltd (OrderWise), a provider of ERP software solutions for industrial companies with retail, wholesale, ecommerce, and distribution requirements. OrderWise’s specialised, highly-integrated financials, order management, Point of Sale (POS), warehouse management (WMS), transportation management (TMS) and ecommerce solutions are used by nearly 1,000 clients throughout the United Kingdom.

OrderWise will significantly expand Forterro’s northern Europe region, with the product representing the group’s fourth largest revenue stream and fourth largest customer base. The acquisition marks Forterro’s second in the UK, following its acquisition of 123insight a year ago. It also serves as Forterro’s inaugural acquisition under its new owners Partners Group, a leading global private markets firm, acting on behalf of its clients.

“We warmly welcome OrderWise, its people and customers,” said Dean Forbes, CEO of Forterro. “OrderWise and its products are a perfect fit with the Forterro vision and cements our position as the leading provider of software solutions for the industrial SMEs of Europe.”

Richard Furby, president of Forterro Northern Europe and group M&A, agreed. “Forterro’s portfolio of solutions for the midmarket manufacturing sector comprises a diverse range of local and vertical industry solutions. OrderWise has a core strength in the UK warehousing and distribution spaces, which when added to our acquisition last year of DACH-focused myfactory, means we now serve the needs of over 5,000 European customers in these two niches alone.”

David Hallam, founder of OrderWise, will transition out of the business. He will be handing over to his well established leadership team to work with Forterro on the next phase of growth for OrderWise. “This is a bittersweet moment for me,” said Hallam, who coded the first version of the OrderWise system just a few years after completing college. “It will be one of my life’s greatest achievements to have built a business that has been able to help so many UK companies grow and thrive.”

He continued: “The past two years have been our strongest to date. As we close in on another year of double-digit revenue growth and finalise the development of our browser-based version, OrderWise is in an ideal position for new ownership. I have been searching for a partner that would take this company to the next level, while allowing us to stay true to our roots and continue taking care of our customers. I am pleased to say that Forterro is that partner.”

Cargotec-Konecranes merger seeks competition clearance

In order to secure approvals to complete their previously announced merger, Cargotec and Konecranes are in active dialogue and cooperation with the relevant authorities to consider ways to mitigate concerns raised by the competition authorities.

Cargotec and Konecranes submitted a remedy package to the European Commission comprising a commitment to divest Konecranes’ Lift Truck business and Cargotec’s Kalmar Automation Solutions. The proposed divestitures would eliminate overlaps between the parties’ Container Handling Equipment businesses but allow the combined company to combine others and continue to be a strong player in all aspects in container handling equipment.

Cargotec and Konecranes understand that the EC will now examine the proposed remedy package and may conduct a customary market testing.

In a statement, Cargotec and Konecranes have said are confident that the proposed remedies appropriately address the concerns raised by the EC. Should clearance be obtained based on the offered remedy package, the merger would proceed comprising of Konecranes’ Industrial Equipment and Service businesses as currently operated, Cargotec’s MacGregor and Hiab businesses as currently operated, as well as the operations of Konecranes’ Port Solutions and Cargotec’s Kalmar businesses other than the areas subject to remedy discussions.

Cargotec and Konecranes are confident that the future company will create customer value within container handling industry with its wide product and lifecycle service offering, as well as development and innovation capabilities.

The divestments, if made in line with the proposed commitments, will not change the industrial logic behind the combination of Cargotec and Konecranes. The companies will announce the expected high-level financial impact of the proposed remedies once information is available on the exact scope and possible ancillary arrangements relating to the possible remedy divestments in due course.

The final decision on possible divestitures of any businesses as well as possible terms and conditions thereof will be confirmed only after the EC’s review and market testing process, as well as further proceedings with the other competent authorities. The possible divestitures are further subject to various local legal requirements. Cargotec and Konecranes have started an assessment of possible external buyers in order to identify the best alternatives to satisfy the authorities’ requests and to support the future development of these businesses.

Further announcements on the approval processes will be made in due course once further decisions on possible material approval conditions and possible divestitures are made.

Cargotec and Konecranes remain confident that the merger will be completed by the end of H1/2022. Until all merger closing conditions are met and the transaction completed, both companies continue to operate fully separately and independently.

DSV Panalpina completes acquisition of Agility Global Integrated Logistics

All conditions and requirements for the acquisition of Agility’s Global Integrated Logistics business (GIL) have been met, and DSV Panalpina A/S (DSV) is now formally taking over GIL from Kuwait-based Agility. With the acquisition of GIL, DSV is becoming a global top-three player within transport and logistics and the aim is to continue to grow the business from this strong position.

Today’s expected completion of the acquisition of GIL marks an important milestone on the growth journey for DSV. Within transport and logistics, size is critical and with the acquisition DSV fortifies its position as one of the world’s largest transport and logistics companies.

“I am very pleased to welcome our new colleagues from GIL on this important day. There are many similarities when you look at our two companies both in terms of the business models and services and, not least, when we look at our shared focus on local empowerment and putting customers first. DSV and GIL simply constitute an excellent match. We will now start the integration, and, together, we are going to grow the business and bring even more value to our many customers, partners and shareholders than we do separately,” says Jens Bjørn Andersen, Group CEO, DSV.

The enterprise value of the transaction is approximately DKK 30.2 billion and the equity value approximately DKK 29.6 billion. The combination of DSV and GIL will have an expected combined pro forma revenue of approximately DKK 160 billion (based on last 12 months) and a combined workforce of 75,000 employees in more than 90 countries.

As consideration for 100 pct. of GIL, Agility receives DSV shares representing approximately 8 pct. of all post-transaction outstanding shares of DSV. This will make Agility the second largest DSV shareholder based on today’s shareholder register. After completion of the transaction, DSV has agreed to nominate an Agility representative to DSV’s Board of Directors.

Improved service offerings across all three divisions

GIL has an annual revenue of DKK 29 billion (USD 4.6 billion) with Air & Sea freight as the main contributor. This will be added to DSV’s existing global network. Moreover, the inclusion of GIL is building on DSV’s presence in both APAC and the Middle East. With 1.4 million square meters of warehousing capacity, GIL will be a strong addition to DSV Solutions, while the road freight activities in Europe and the Middle East will strengthen the DSV Road network.

“By adding the GIL network and competencies to our existing network, we improve our competitiveness across all three divisions: Air & Sea, Road and Solutions. This brings commercial synergies and cross-selling opportunities while at the same time providing our customers with an even higher service level and a one-stop-shop for logistics needs,” says Jens Bjørn Andersen.

The combined DSV and GIL business is aiming to use the strengthened position in the market to continue to grow through enhanced service offerings for customers, market-leading IT infrastructure and economies of scale.

DSV’s acquisition strategy has proven successful in both acquiring and integrating companies, most recently Swiss Panalpina in 2019 and American UTi Worldwide in 2016.

The focus on scalability remains one of the key competitive advantages in freight forwarding with significant operational and commercial benefits in a highly fragmented market.

Now the integration process of GIL can begin. The two organisations will be merged in a country-by-country process, which means that for customers and employees in many countries the coming period will be business as usual until the country-specific merger process is initiated. As has been a key focus in previous acquisitions, DSV will be approaching this integration with due respect for both organisational and individual considerations.

Despite the expected completion of the transaction today and in line with what has been agreed, regulatory clearances are pending in a limited number of jurisdictions where revenues individually and combined are insignificant compared to the combined post-completion revenue, and in each such jurisdiction completion of the acquisition and commencement of integration activities are awaiting the relevant regulatory clearance.

DPD UK announces acquisition of CitySprint

DPD UK, part of DPDgroup, one of Europe’s largest parcel delivery networks and CitySprint, a UK same day delivery company, today announce that CitySprint will become part of DPDgroup, subject to regulatory clearance.

This follows a period of growth for CitySprint, which has seen continued demand for its services as businesses require more urgent and time critical same day deliveries. Once completed, DPD UK’s customers will be able to access CitySprint’s same day and specialist delivery services in the UK, while CitySprint will be able to offer its customers access to DPD UK’s domestic next day and international expertise.

The existing CitySprint leadership team will remain in place. Elaine Kerr, CEO of DPD UK, commented:

“Same day delivery is one of the fastest growing segments of the logistics market and so we are delighted to announce the intention to offer this new and exciting service to our customer offering. Even before the pandemic, demand for both next day and same day deliveries was soaring, and this trend has only escalated, something which we see continuing. DPD UK is already a market-leader, and once this acquisition completes, our position in the market will be strengthened further.”

Gary West, CEO of CitySprint, commented:

“We are pleased to be joining DPDgroup and excited about the new opportunities for growth this will bring. Our two businesses are experts in their respective fields, with very complementary offers. This move is testament to both the continued strong demand for same day delivery and our successful growth strategy. We look forward to working with DPDgroup to explore new opportunities for our same day expertise and services.”

CitySprint supports businesses across the UK with a range of delivery solutions, including same day, bespoke logistics design and specialist services for key sectors such as retail and healthcare. Its unique national same day delivery network comprises 30+ service centres across the UK with geographical reach to over 88% of the mainland population within 60 minutes.

This transaction is subject to approval by the Competition and Markets Authority and is expected to complete later this year. No further financials will be disclosed at this juncture.

Major Logistics Acquisition Completed

XPO Logistics, a leading global provider of transport and logistics solutions, today announced that it has completed its previously announced acquisition of the majority of Kuehne + Nagel’s contract logistics operations in the UK and Ireland.

Malcolm Wilson, XPO Logistics chief executive officer for Europe, said, “We’re pleased to complete the Kuehne + Nagel acquisition and welcome these prestigious new customers and talented colleagues to XPO. We look forward to the new opportunities that have been created by the combined resources of our larger organisation.”

The transaction expands XPO’s contract logistics network in the UK and Ireland to 248 locations and approximately 26,000 employees. The acquired operations provide a range of logistics services, including inbound and outbound distribution, reverse logistics management and inventory management, primarily in the beverage, technology and e-commerce, and food service verticals.

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