Providing a catalyst for
southern African growth
Alan Peat and
David Robinson (London)
THE UK company Exel is acquiring the large, privately-owned SA forwarder, Eagle Freight, in a deal valued at almost R63-million.
The advantage in the takeover, according to Exel's Johannesburg-based m.d. for Africa, Steve Sharratt, is that Eagle's seafreight and airfreight business will complement his company's activities in the region.
"Eagle provides Exel with an excellent catalyst for growth in southern Africa," he said, "and significantly enhances the base from which we can continue to build our operations in the southern hemisphere."
He highlighted Eagle's customer base in the FMCG (fast-moving consumable goods), automotive, textile and petrochemical markets; its strong seafreight business in Cape Town, Durban and Port Elizabeth; and its head office and main warehousing operation in Johannesburg.
It is also expected to strengthen Exel's customs clearance, domestic airfreight and roadfreight operations in this country.
This acquisition will bring the R70.5-billion UK group's spending on takeovers this year to R1.4-bn.
The latest deal is subject to approval by the SA Competition Commission.
An Exel source told FTW's London correspondent, David Robinson, that the deal was expected to have been cleared through the Competition Commission early next year.
"We envisage a quick integration as there is little duplication of facilities," he said.
Echoing the sentiments of local Exel management, he drew attention to the companies' synergies. "The deal brings together Exel's existing import/export services based on airfreight for such multinational companies as Kodak and Gillette, with Eagle's strength in seafreight and other related facilities.
"Eagle has a strong management and we would like to see them all stay to help in developing the company," he added.
"Exel does not envisage any redundancies although there may be some changes in bringing together the airfreight and admin sides."
