|
|||||
|
Exel to Buy Tibbett & Britten  Reprint permission
Consolidation continues to sweep the logistics industry. Logistics giant Exel is purchasing competitor Tibbett & Britten for approximately $598.5 million. Both are based in the United Kingdom. The acquisition is the latest in a string for the $9.3 billion heavyweight Exel. The company spent $205 million on acquisitions last year and recently purchased Fujitsu Logistics in Japan. Tibbett & Britten, a $2.6 billion international logistics provider, agreed to the offer, a premium of 14.3 percent over the company's closing share price on June 15. The union of the two companies would create a company worth approximately $12 billion with operations worldwide. Exel employs over 74,000 people in more than 120 countries and Tibbett & Britten employs over 35,000 people in more than 35 countries. Exel plans to save between $27.38 million and $36.5 million annually by consolidating operations between the two companies. The acquisition will allow Exel to expand in the non-food retail sector, a key growth area for the company; provide critical mass in several markets, including Germany, Hungary, China and South Africa; create opportunities to sell integrated contract logistics and freight management solutions; add approximately 70 percent to Exel's contract logistics turnover in Europe and the Americas; and strengthen its position in several global markets. Said John Allen, CEO of Exel: "the acquisition of Tibbett & Britten will expand our geographic and sector coverage, enabling us to provide enhanced services to our new and existing customers." The bid is an example of further consolidation in the market due to lower margins, said John Manners-Bell, chief analyst at U.K.-based Transport Intelligence.
|
|||||
