TPG acquires global freight forwarder Wilson
11 June 2004 - 10:30 CET
Mail, express and logistics company TPG N.V. has announced today the acquisition of the Swedish-based global freight forwarding company Wilson Logistics Group from Nordic Capital. The purchase price is approximately SEK 2.35 billion (EUR 257 million) and will be financed from cash reserves. In line with the strategy of TPG's division TNT Logistics, this acquisition is TNT's first major step into global freight forwarding and further strengthens its position as a leading logistics and express service provider.Wilson has a strong global freight forwarding operation in 28 countries. With revenues of approximately EUR 714 million in 2003 and more than 2,000 employees, the acquisition of Wilson will add to TNT's existing freight forwarding capabilities located within the Express and Logistics divisions.
The move reinforces TNT's firm foothold in key sectors such as automotive, electronics, hi tech and FMCG. By bringing on board Wilson's strong management team, TNT gains industry specific know-how, access to state-of-the-art proprietary IT systems in freight forwarding, as well as access to a broad global client base.
By acquiring Wilson's freight forwarding capabilities, TNT will be able to offer its existing contract logistics clients the full array of supply chain management services, now including air freight, sea freight and combined sea/air freight. The broadening of key strengths is expected to attract new clients in the contract logistics business.
Wilson will form the platform for freight forwarding within TNT Logistics. The ongoing commitment of Wilson's senior management has been secured. Management will work closely with TNT to integrate this new freight forwarding capability into its total service offering.
TPG has identified opportunities to boost revenues - cross selling and new business wins - and secure operational synergies, mainly through capitalising on combined purchasing power in air transportation.
Freight forwarding will stimulate further growth for TPG. While the Wilson freight forwarding business is asset-light, it has a history of strong growth and good prospects. By adding a dedicated unit in freight forwarding, TPG is expected to grow faster in its key sectors and markets in both freight forwarding and logistics.
Peter Bakker, CEO of TPG, says that: "This acquisition is TPG's first major step in extending our capabilities into the global freight forwarding industry. As a global player, Wilson offers stable operations and a comprehensive air and seafreight network across 28 countries. Its excellent reputation as an efficient and reliable freight forwarder is extremely important. With relatively low capital demands, the move is good news for TPG's clients and shareholders alike."
Henrik von Sydow, CEO of Wilson Logistics Group adds: "We believe that the strength in leverage, geographical reach and service scope that TNT brings, in particular through its Logistics and Express divisions, adds to the competitive edge of Wilson. This will enable us to fast track our growth, moving us to the next level. The strategic fit for both Wilson and TNT in joining forces is truly compelling."
This acquisition is subject to the approval by the relevant competition authorities and is expected to close in the third quarter of this year.
