Austrian and US companies join the fold
THE FORWARDING company Exel has just announced two more takeovers - adding to a whole string of strategic acquisitions in the last two years.
It has acquired a 100% shareholding in All Cargo Logistics (ACL), a leading Austrian airfreight forwarder, and is acquiring the business and assets of United States Consolidation Limited (USCL), a supplier of freight consolidation services to US retail customers, with net assets worth US$5.3-million.
For a number of years, Exel has operated in Austria through a local agent. But growing business volumes have justified a need to establish a stronger presence in that country, and ACL helps fulfil this need, according to management.
USCL, meantime, provides a significant opportunity for Exel to strengthen its presence in the sea freight market, according to Exel c.e. John Allan.
"Its range of consolidation services will enhance our position with major retail and consumer companies," he said, "and will support the group's objective of building a strong global sea freight business."
These take-overs are part of an on-going procedure, said Steve Sharratt, Exel's regional director for Africa, designed to add strategic muscle to both sides of the company's business - freight forwarding and contract logistics.
"We have been acquiring companies at the rate of about one-a-month for the last two years," he told FTW. "Each of these was chosen because they add either to our general forwarding or our industry specialisation."
The group as a whole, he added, has a string of industry sectors in which it specialises - for example, high-tech goods and pharmaceuticals.
"This," Sharratt said, "has led to the acquisition of businesses in other market sectors such as the automotive sector in recent times."
