Kintetsu buys Thai firm

Kintetsu World Express, Japan’s second-largest international forwarder, will acquire Thailand’s TKK Logistics Co., Ltd. in stages and make the Bangkok-based firm its consolidated subsidiary.

Kintetsu said in a statement that it has reached an agreement with Kanit Smithivas, the current chairman and sole shareholder of TKK Logistics, to purchase 60 percent of TKK’s shares initially for $6.63 million as of Jan. 5 and the remaining 40 percent over three years.

The deal has been approved by TKK’s board, Kintetsu said.

Kintetsu said TKK has a strong business base centered around logistics services for the automotive and electronic parts industries. It also provides air and ocean freight transporting services.

The Thai company has 685 employees and posted sales of $35 million in its 2007 business year.

The acquisition expands Kintetsu’s range of transported products and client base. TKK owns a number of warehousing facilities, which will expand Kintetsu’s network within Thailand, the Japanese company said.

Firm defers purchase of entire Aboitiz Transport

MANILA, Philippines- Owing to the tightening credit situation, the shipping company which was set to acquire the entire Aboitiz Transport Systems Corp from the Aboitiz group decided to defer the acquisition of the entire stake of the Super Ferry Lines.

In a statement to regulators, holding company Aboitiz Equity Ventures Inc. and Aboitiz & Co. Inc. said it accepted the offer of KGLI-NM Holdings Inc., a joint venture between Negros Navigation Inc. and Dutch company KGL Investment BV, to buy 42-percent stake in Aboitiz Transport for P1.89 billion. The 7 percent of the company is held by the public and will be subject to a tender offer.

KGLI-NM had originally wanted to immediately acquire Aboitiz Transport.

Stephen Paradis, AEV chief financial officer, said the holding company has given the option to KGLI-NM to acquire the rest of the stake anytime between May 1, 2009 to September 30, 2009 at the same price of P1.84 per share plus a premium of 9 ½ percent.

“Because of the global situation, KGLI-NM had a hard time in finding funding for the transaction," Paradis said in a telephone interview.

But he said KGLI-NM is still keen on buying the entire ATS.

AEV owns 1,889,489,607 common shares of ATS while ACO owns 390,322,384
common shares of ATS, representing 77.10 percent and 15.93 percent respectively of the total outstanding ATS capital stock. ACO is the private holding company of
the Aboitiz family and is AEV's largest shareholder.

KGL Investment initiated investments in port and port-related businesses and other logistics related businesses in the Philippines through the establishment of an air-transportation logistics complex in Clark Field, Pampanga, under an agreement signed with the Clark International Airport Corp. in April 2008.

Ryder System agrees to buy Edart Leasing's assets

MIAMI - Transportation management company Ryder System Inc. said Tuesday it has agreed to acquire nearly all the assets of Edart Leasing Company LLC to help expand its reach in the Northeast market.

Ryder will acquire the Hartford, Conn., company's truck leasing, commercial truck rental and contract maintenance businesses. Financial terms of the agreement were not disclosed.

Edart Leasing, a family owned transportation services provider, has nine locations in Connecticut, Massachusetts, and New Jersey. Ryder will acquire Edart's fleet of roughly 1,450 full service lease and 150 rental units, which serve more than 340 contract customers. The company will also acquire roughly 600 vehicles that will be sold in the used truck market.
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In a note to investors late Tuesday, Stifel Nicolaus & Co. analyst David Ross said he expects the deal to add modestly to earnings.

"The company has a solid track record of growing through these small, regional acquisitions," said Ross, who maintained a "Buy" rating on the stock. "We would expect to see more of these over the next few quarters, as the company looks to grow in this difficult economic environment and is likely getting good prices for these deals."

The acquisition is expected to close in January, pending customary closing conditions.

Logistics companies relook at targets amid slowdown Ashutosh Kumar

Logistics companies have started feeling the heat the global economic downturn and of revised growth projections domestically.

Integrated supply chain and logistics services provider Transport Corporation of India (TCIL) is pruning its Rs 200 crore expansion plan. The investment was focused on acquiring ships, trucks and warehousing space by 2010.

"We are slashing our expansion plan by half at Rs 100 crore, owing to slowdown in the economy. We will, for the time being, shelve plans for acquisition of ships and trucks," said Vineet Agarwal, executive director, TCIL. Agarwal said that the slowdown will acquire more serious dimensions in the near future.

"We have already seen substantial increase in failures on payment commitments by the clients. We will not hesitate in winding up operations in verticals that are not profitable," he added. The TCIL scrip has taken a beating on the stock exchanges.

The scrip slipped from Rs 175.85 per share in December last year to Rs 38 a share now, registering a sharp 78% dip.

The company has initiated mega cost-rationalisation drive to tide over the situation. "We are taking various initiatives to ensure that there is optimum utilisation of manpower, materials and resources," Agarwal added.

Another major player in the logistics space, Bluedart, which provides express air and integrated transportation services, has winded up its expansion plan worth Rs 200 crore for this year.

However, the company officials feel that the slowdown will certainly affect volume growth and in turn dent its bottomline.

Bluedart has already reported a 22% decline in profit after tax for the quarter ended September 30, 2008, at Rs 13.58 crore compared with Rs 17.43 crore in the corresponding quarter last year.

"Volume growth has comne down from 20% earlier to around 13-14% now," said Anil Khanna, managing director, Bluedart.

"The logistics sector is totally dependent on the services and manufacturing sectors, which are wilting under the slowdown heat. This is certainly having an impact on almost all verticals of logistics services. It now depends on what initiatives the government takes on lending rates and liquidity to boost consumption and growth," he added.

Bluedart, apart from cost rationalisation is also planning to hike freight charges by up to 5-10%, said Khanna.

Logistics services provider Safexpress, however, is quite confident of its investment plans.

"The current recession is affecting growth. But our plans of doubling revenues to 1,000 crore remains unchanged," said Vineet Kanaujia, general manager, Safexpress.

Speaking on the outlook of the sector, Harsh Srivastava, senior VP, (marketing), Feedback Ventures, said, "This sector will certainly grow. Economy demands logistics. Garments, power equipments, construction equipments, food will move as the economy is moving."

Crowley acquires Customized Brokers

Crowley Holdings Inc., the newly formed holding company for Crowley Maritime Corp., has acquired Miami-based Customized Brokers, a customs clearance company specializing in refrigerated cargoes arriving by air and sea. Terms were not disclosed.

Customized Brokers, which has 32 employees, will remain an independent company with its office in Miami, and will continue to serve its current clientele while offering additional logistics services through Crowley Logistics. Customized Brokers has specialized in the clearance of fresh fruit and produce since its founding in 1989.

China Chongqing Gangjiu ends $220 mln asset deal

SHANGHAI, Nov 8 (Reuters) - Chongqing Gangjiu Co (600279.SS: Quote, Profile, Research, Stock Buzz), a port operator in China's western city of Chongqing, said on Saturday that it had scrapped a $220 million deal to buy port assets from its parent because of poor stock market conditions.

Gangjiu had announced in June that it would raise 1.5 billion yuan for the purchase by placing 144 million new shares at a minimum of 10.41 yuan apiece with its parent firm, Chongqing Port & Logistics Group.

But Gangjiu said on Saturday that both sides had agreed to cancel the plan because of the stock market crash, which has prompted a string of Chinese companies to call off asset purchases and fund-raising deals over the past six months.

Gangjiu's shares last closed at 4.47 yuan, down from 11.29 yuan when its deal was originally announced. ($1 = 6.82 yuan).

Austin Ventures Announces Investment with Robert Stull to Launch Port Logistics Group

Austin Ventures ("AV"), one of the nation's leading venture and growth capital firms, announces the acquisition of three companies to launch Port Logistics Group ("PLG"). The investment was made in partnership with Robert Stull, a leading executive in the transportation logistics and distribution services industries. Mr. Stull will lead PLG as its President and Chief Executive Officer. With revenues of approximately $100 million at its launch, PLG becomes one of the leading nationwide providers of warehousing, distribution and transportation services in U.S. port cities. PLG develops and implements innovative logistics solutions to help the world's leading companies get their products to market faster and more efficiently. The company will be headquartered in Houston, Texas.

"We are excited about our investment with Bob to build a national, port-focused logistics company. He is a skilled operator, an innovative executive, and a dynamic leader who has developed great teams and delivered strong results for his customers and his shareholders at every step in his career," said David Lack, AV Partner. "These initial acquisitions are the first of many that we will make with Bob as PLG extends the reach of its port logistics capabilities for its customers."

"After conductingsubstantive market research and having discussions with severalcompanies, both large and small, I became convinced of the need for a nationwide logistics company that provides consistent, high quality service across a broad range of logistics services in our nation's port cities," said Bob Stull, CEO of PLG. "We have launched this platform with companies who are highly regarded by their customers for delivering superior service in their local markets. I look forward to meeting with other founders and entrepreneurs operating in port cities that share our vision and want to join us in this initiative."

Mr. Stull is the former President and CEO of Roadway Express, one of the largest transportation companies in the United States. His career with Roadway is a corporate success story -- Mr. Stull accepted an entry level position with Roadway in 1977 and progressed through the ranks over the next 28 years to become CEO of the $3 billion enterprise. During his tenure, Mr. Stull implemented changes which led to significantly increased operating income and successfully guided the organization through its acquisition. Under his leadership, Roadway Express became known as an industry leader in the areas of employee engagement and leadership development. Prior to being President and CEO, Mr. Stull served as Roadway Corporation's Vice President of New Venture Commerce where he was responsible for diversifying and growing the company's portfolio of businesses, broadening its network of strategic partnerships, and launching new products.

"AV has been an active investor in the supply chain services market for almost a decade. Our investment in PLG with Bob is a reflection of our continued commitment to pair strong supply chain and logistics businesses and their founders with seasoned, successful senior executives and the capital and logistics experience of AV," said Phil Siegel, AV General Partner.

AV's relationship with Mr. Stull was established as part of a stated strategy to partner with talented executives with proven track records to build growth companies in attractive markets. AV has a dedicated in-house talent function that identifies executives that want a hands-on partner in building their next business.

EI buys Chinese logistic developer

Equity International, the private equity real estate firm co-founded by Sam Zell and Gary Garrabrant, has acquired its third real estate portfolio company in China. Yupei develops and manages industrial, warehousing and logistics properties.

Equity International has bought a Chinese industrial and logistics development company for $46 million – it’s third portfolio company in the country, according to a statement.

The Chicago-based private equity real estate firm, co-founded by Sam Zell and Gary Garrabrant, said it closed the deal with the private Shanghai Yupei Company, which develops, owns and operates modern industrial, warehousing and logistics properties in China, this week.

Yupei currently has five properties in four cities across China, comprising approximately 350,000 square metres. The deal marks Equity International’s third portfolio company in China.

Garrabrant said there was increasing demand for new warehouses in China, driven in part by the obsolence of old stock and a lack of suitable space. He said the growth in domestic consumption would fuel this further adding there were “powerful fundamentals” for the sector.

Aberdeen-Based Containental Offshore Acquired by Investor Group

Aberdeen-based Containental Offshore has been acquired by an investor group led by London-based private equity firms, Lansdowne Capital and Claver Capital.

The company provides high-specification containers and cargo carrying units to the offshore oil and gas industry and the acquisition, which valued Containental Offshore at in excess of £10 million, provides a strong and secure financial base for it to further expand its fleet of over 2,500 rental units.

The deal was backed by debt funding arranged by the Royal Bank of Scotland (RBS).

Containental Offshore’s management team of David Nightingale and Peter Coy, will remain with the business and are reinvesting as part of the transaction.

The move will also enable the company – based at Pitmedden Road Industrial Estate, in Dyce – to develop into further overseas’ regions while also extending its product offering into related offshore oil and gas services and equipment.

The company – which currently employs 14 staff – also expects to increase its workforce considerably over the next few years as it grows both organically and through further acquisition.

Containental Offshore’s Managing Director, David Nightingale said: “We are excited to have Lansdowne Capital and Claver Capital working with us on the further development of the business. This sizeable investment by leading international financial experts will allow us to accelerate our expansion and build on the successes of recent years, both in our domestic and international markets.

“We have invested significantly in our rental fleet but we have also built a strong bespoke container design and manufacturing business that has exceeded all expectations. We now export to oil service customers in locations as diverse as Australia, Asia, Africa and the Americas.

“This growth has been driven by the broadening acceptance of high specification DNV 2.7-1 / EN 12079 industry standard equipment by the upstream oil industry and an ever increasing variety of cargo being transported to offshore installations.”

Mr Nightingale added that the recent acquisition provides the resources necessary to substantially grow the business through a combination of capital investment, rolling out new services and further acquisitions both in the UK and overseas.

Containental Offshore represents Lansdowne Capital’s first investment in an oil services company, but the firm has had excellent success in related sectors and believes that a number of important trends support the potential for growth of logistics businesses in the oil services sector.

Lansdowne Capital’s Chairman, Alan Dargan said: “We have previously supported a number of successful investments in the packaging and distribution sectors, and identified in Containental Offshore an excellent opportunity to support experienced management to expand their global reach and attain their full potential.”

RBS Structured Finance provided acquisition and working capital facilities in support of the deal.

Stuart Roberts, Head of Structured Finance with RBS in Aberdeen, said: “This is a great deal for all parties involved. David and Peter both have significant oil and gas industry experience and stand to benefit not only from the injection of new capital, but also the ideas and experience that will be brought to the table by these ambitious private equity sponsors.”

Logistics firm picks up Perth business

The credit crunch has not slowed logistics and data management company Freightways' ambitious Australian expansion plans.

The company yesterday announced that it had acquired Perth-based Access Information Management for A$3.5 million ($4.01 million).

Access, a document and data storage business, adds to the company's stable of information management businesses across the Tasman, which has grown from the initial purchase of data storage firm DataBank in 2006.

The company also owns Brisbane-based Document Destruction and Paper Recycling, Queensland firm Shred-X and Victoria Paper Recyclers. Earlier this year, it purchased National Records Managers in Canberra and Melbourne's Fine Paper Suppliers.

Managing director Dean Bracewell said the acquisition of Access "further extends our footprint" in the Australian information management market.

"We can now offer a national service to our customers and prospective customers in all areas except for Tasmania and Northern Territory where we've got very established agency agreements. We've got our own presence elsewhere, right up the eastern seaboard and across to WA now."

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Bracewell expects Access to generate earnings before interest, tax, depreciation and amortisation (ebitda) of about A$600,000 in the following 12 months, and be immediately earnings per share positive.

The company's information management businesses now account for around 15 per cent of its earnings, although express package delivery and business mail still account for the major part of its income.

Bracewell said the company was "always looking" for further acquisitions. He said Freightways had no difficulties accessing credit, having renegotiated its bank facilities in October last year: "At that time, we negotiated headroom for the type of acquisition we've been doing in recent times such as this one, so we've got sufficient headroom to continue to look at growth opportunities."

At the company's annual meeting last month, Bracewell announced ebitda for the three months ending September 30 was up 8 per cent, while net profit after tax had increased 3 per cent over the previous corresponding period.

Wincanton at the races again with £24m Suffolk deal

Supply chain specialist Wincanton has swooped for a second East of England logistics provider, taking its total investment in the region this year to £49 million and making it the UK’s leading container logistics provider.

Suffolk haulage specialist, CEL Group, is the latest acquisition, bought for £24 million and joining the £25m purchase that Wincanton made in January this year of Hanbury Davies, another Suffolk container firm.

While the Hanbury Davies deal brought in a workforce of 780 operating 480 vehicles and announced Wincanton’s full time entry into the container logistics sector, the CEL deal seals its place in the market with a 15 per cent market share.

CEL Group operates a fleet of 370 vehicles and employs 470 people from centres across the UK and its acquisition brings a portfolio of major shipping lines and freight forwarders to Wincanton, significantly broadening its customer base.

It trades under three companies, CEL (Logistics), W Carter (Haulage), and CEL (Engineering) and reported turnover of approximately £60.7m in the 12 months to August 31, 2008.

Its operations cover all the major UK ports including Felixstowe, Tilbury, Dordon, Liverpool, Hull, Middlesbrough.

Though Wincanton’s announcement said the acquisition would enable the company to maximise synergy benefits with the integration of its existing container business with CEL, a manoeuvre often accompanied by job cuts, a company spokesperson said redundancies would be at a minimum as the CEL operation is expected to operate from its existing facilities.

CEL managing director, Shaun Allen, said: “Wincanton’s focus on the container industry within the supply chain mirrors our own strategic objectives for growth and we look forward to the opportunities that this will create for our customers.”

The move will also strengthen operations at the inland container terminal in Alconbury, which provides cost-effective off-dock container storage and which Wincanton says will allow it to benefit from the growth in global sourcing and low cost overseas manufacturing.

Managing director of Wincanton Emerging Solutions, Jeff Anderson, said: “This considerable strengthening of our container activities in the UK complements our market leading intermodal business in mainland Europe and demonstrates our future commitment to the container industry and our customers.
“In CEL, we have found a business that provides a strong strategic fit with Wincanton.”

The acquisition will also allow Wincanton to continue its revenue growth, which for the half-year to September 30, 2008 was 16.4 per cent above H1 2007 at £1.20bn, though pre-tax profit fell 45 per cent to £12.0m (H1 2007: £22.1m).

Wincanton has 30,000 people operating across Europe and producing an annual turnover of over £1.9bn, specialising in the automotive, chemicals, consumer goods, food service, hi- tech, industrial, energy & petroleum and retail sectors.

Darren Bear of Grant Thornton, who together with Mills & Reeve’s Norwich office advised CEL on the acquisition, said the deal’s completion was a testimony to the strength of the group.

“CEL Group is a resilient business and one of the largest independent players in the market,” said Bear. “It has continued to perform strongly and that was obviously a huge attraction to Wincanton.”

Colin Carter, joint chairman of CEL Group, said: “Having run this company for over 50 years it was a significant and emotional decision to find a new home for the business.

“Grant Thornton and Mills & Reeve went to great efforts to find the best solution for both the business and the shareholders and understood the sensitivities involved in a process like this.”

Global transportation/logistics industry's M&A activity off 2007's pace

During the third quarter, only 37 merger and acquisition deals valued at $50 million or more were announced in the global transportation and logistics (T&L) industry, slowing the pace of M&A deals in the year's latter half, according to PricewaterhouseCoopers L.L.P.'s quarterly M&A activity report.

Through 2008's first nine months, M&A deals valued at $50 million or more totaled 125, meaning the year's total likely won't match 2007's 193 deals, the report states.

However, a significant number of large deals (those valued at $1 billion or more) were announced in 2008's first three quarters. Fourteen large deals contributed a total deal value of $66 billion. Yet, only one of the 14 deals was announced in the third quarter, when deal value totaled a low $11 billion, PricewaterhouseCoopers said.

"Given the current economic and credit environment, deal activity in the fourth quarter will likely not exceed the levels seen in the third quarter, and may even decline," the report states. "Accordingly, deal value in 2008 is not expected to match the levels of the previous two years."

M&A deal activity outside of the United States slowed in the third quarter — a major change from previous quarters, when deals that didn't include U.S. entities remained ahead of overall deal activity, PricewaterhouseCoopers said.

"It is apparent that the decline of the global banking sector and tightening global credit markets have caused a slowdown in deal activity beyond those transactions that involve U.S. parties," the report states.

Since 2006, interest in deals involving passenger air targets has declined dramatically in favor of passenger ground and rail targets. Only 12 percent of deal value was attributed to passenger air targets during 2008's first three quarters compared with 29 percent in the same 2007 period and 48 percent in the same 2006 period. Rail targets accounted for 23 percent of deal value in 2008's first nine months, PricewaterhouseCoopers said.

"Passenger ground public-to-private deals are attractive for investors due to their stable returns and cash flows, resulting from relatively low competition," the report states. "Passenger air targets are perceived to be riskier investments, due to underperforming stocks and general anxiety about the industry as a whole."

Boeing finishes acquisition of Tapestry Solutions

Boeing said Thursday it completed its acquisition of Tapestry Solutions, a San Diego-based company specializing in services and software systems that improve the tracking and distribution of equipment, spare parts and personnel for the U.S. Department of Defense and other agencies.

Tapestry will operate within Boeing’s St. Louis-based Integrated Defense Systems' Global Services & Support unit.

Terms of the deal were not disclosed.

The acquisition, announced in September, is part of Boeing's strategy to expand in the supply chain and logistics command and control markets.

Last month, Boeing said it also would buy St. Louis-based Federated Software Group, another logistics software firm.

A unit of Chicago-based Boeing Co. (NYSE: BA), Integrated Defense Systems is one of the world's largest space and defense businesses specializing in innovative and capabilities-driven customer solutions. Headquartered in St. Louis, Integrated Defense Systems is a $32.4 billion business with 72,000 employees worldwide.

Nigerian Investors Acquire Panalpina

A group of Nigerian investors with impeccable top drawer credentials led by Port-Harcourt based businessman and oil services technocrat, Chief Charles Obule, has bought over Panalpina Nigeria.

In a seamless transition, Worldwide Premier Logistics Solution (Nig) Ltd, took over the 54-year-long operations of Panalpina in Nigeria as the culmination of a painstaking process which began a few months ago. The wholly indigenous Nigerian company now commands a 100 percent stake in Panalpina.

On the board of Premier Logistics Solution are Mallam Abba Dabo, veteran journalist and businessman, the Turakin Kano, Prince Nasir Bayero an administrator and businessman and Chief Charles Obule, who as managing director is expected to bring to bear his wealth of experience in logistics and shipments garnered in over a decade, in the services of Shell Petroleum Development Company (SPDC) as corporate commercial adviser.

According to Obule, "Impressed by the over five decades in air freighting, sea freighting and provision of sundry logistics solutions by Panalpina in Nigeria, and judging by the quantum of investments in human capital development - local and expatriate - it was indeed a patriotic and moral duty for the investors in Worldwide Premier Logistics Solution Nigeria Limited, to buy over the operations of Panalpina in Nigeria."

Obule stated that the investors who come with impeccable top-drawer credentials and formidable reputations built on honesty, hard work, integrity and patriotism, would stake their reputation to ensure the highest principles of business ethics and international best practices in the provision of logistics services solutions.

By the take-over of Panalpina Operations in Nigeria, Premier Logistics Solution has retained all the staff of Panalpina.

Greatwide Logistics Services Reaches Agreement to be Acquired by Investor Group

Sale is Expected to Significantly Reduce Debt and Interest Burden, Enhance Competitiveness and Position Company for Continued Growth and Profitability Lenders to Provide New $73.6 million Financing Facility

Greatwide Logistics Services -- a national provider of non-asset-based transportation and third-party logistics services -- announced today that it intends to enter into an agreement to be acquired by an investor group comprised of its first lien secured lenders, including affiliates of Centerbridge Capital Partners and the D. E. Shaw group.

Greatwide believes that the transaction will allow it to complete its financial restructuring expeditiously while providing an efficient way to address the company's capital structure needs with no disruption to its operations or customer service. Greatwide expects the sale to reduce its debt and interest burden, enhance its competitiveness and position the company for continued growth and profitability.

"We have been pursuing measures to substantially strengthen our capital structure, and we believe the planned acquisition will accomplish those objectives," said Raymond B. Greer, President and Chief Executive Officer of Greatwide. "Greatwide's fundamentals are solid. We believe the proposed transaction is a prudent and necessary step to significantly reduce our debt and interest burden in order to enhance our flexibility to continue to invest and grow."

To implement the transaction, Greatwide will sell the company under Section 363 of the United States Bankruptcy Code. Other parties will have an opportunity to submit higher and better offers to purchase the company under this Court-supervised process and Greatwide anticipates the sale transaction will be completed early next year.

"We believe this process is the best and most certain way to complete our financial restructuring," said Mr. Greer. "Greatwide is a strong company and we expect that moving forward quickly with this transaction will put the company in a significantly stronger overall financial position, which is good news for our company and those we serve."

In conjunction with this process, certain members of Greatwide's existing first lien lender group will provide $73.6 million in new "debtor in possession" financing to support the business through the 363 sale process. Greatwide is pleased to have the strong support of its first lien lenders and expects to receive preliminary approval for the financing by the end of the week. Upon receiving the necessary approvals, the financing facility will be used to fund ongoing operations. In addition, the company will continue to meet all of its obligations to its customers, employees, independent contractors, agents and capacity providers.

Mr. Greer concluded, "We are fortunate that we have a solid and profitable business model and an outstanding blue-chip customer base. We expect that the new financing facility will allow us to continue to meet the needs of our customers, employees, contractors, agents and capacity providers. We look forward to continuing to operate our business as usual while we take this important step to make Greatwide stronger financially."

Going private?

Not only are stock prices down between 50-80% - many companies today are quoting below their replacement costs. Seems to me like it's a good time then to go private. If only it were that easy. Our delisting laws are so antiquated -that delisting is near impossible as Isha Dalal is about to point out.

Essar Shipping, Essar Steel, Blue Dart, Astra Zeneca, SKF India, iGate, Ingersoll Rand, Balsara Hygiene - they all tried it, but only three succeeded. Getting off the exchange is tougher than getting on in India. So what if falling stock prices are luring companies to go private instead?

TV Raghunath, Head-M&A, Kotak Investment Banking says, �If the capital markets are down as they are today clearly, an exit at these prices and at a premium to the current prices is a good option for the exiting shareholders to use. And for the promoters, it�s a good price to buy. So from an economic equation standpoint it�s a very opportune time. The question that will determine whether it�s successful is a function of two things- how the promoter gets liquidity cause he has to finally cut a check to the shareholders and at what price the delisting price gets discovered, what is the exit price which is discovered.�

And that exit price doesn�t always lead to an exit door for companies, thanks to the reverse book-building process in SEBI�s 2003 Delisting Guidelines. In reverse book building - the promoter quotes a floor price to buy out shareholders. Shareholders can in turn quote prices at which they are willing to tender their shares.

The price at which the highest number of shares are tendered in, becomes the discovered delisting price.

Cyril Shroff, Managing Partner, Amarchand Mangaldas which can work in an adverse way if one shareholder decides to skew the process by bidding fairly high. It has resulted in a situation where this is so artificial that the book building price is 2-3 times the market value which makes it completely uneconomical for an acquirer to delist at such a phenomenal premium to the market price.

That's what happened to Pharmaceutical company Astra Zeneca, which went through one of the country�s very first reverse book building processes in 2004!

The company�s shareholders discovered a price of 3000 rupees per share for delisting, compared to the promoter floor price of Rs 825. That was a premium of 260% to the company's then prevailing stock price!

More recently, in 2007, logistics company DHL made a delisting offer to shareholders of its Indian subsidiary Blue Dart at a floor 10% higher than the market price-but that wasn�t good enough for DHL shareholders, who demanded a 72% premium. Needless to say - neither of these offers went through.

In times like these - it's even more unlikely that promoters will be willing cough up big premiums, or any premium at all. There's no going private, till reverse bookbuilding is well, reversed.

Cyril Shroff, Managing Partner, Amarchand Mangaldas says, �The pricing formula needs a fundamental relook. And until it is combined with some fair transparent way of bidding process, it should be linked with the market price. It can be at a premium to the market price. You can fix even artificially 25% 50% whatever as a regulation can be prescribed as a premium above market price so that there is an inbuilt element ot enable an acquirer to go ahead.�

Price is one big problem, response is the other. The guidelines require almost every shareholder to play along. For larger companies, 90% of stock has to be acquired by the promoter, whereas a 75% acquisition is mandatory for smaller companies to delist. All this right at the reverse bookbuilding stage or else the offer fails.

Investment Banker Sourav Mallik says, �To get a retail shareholder into a trading terminal and get them to upload their bid has always been the challenge. so when you had a threshold as high as 90% which meant that you have get a significant portion of the retail shareholders to the trading desk, that become a challenge.�

This challenge is exactly why Essar Shipping�s 2007 delisting offer wasn�t smooth sailing.

The company fell short of the delisting threshold by 15% and the offer sank.

Cyril Shroff, Managing Partner, Amarchand Mangaldas says, �Main reason why offers have been failing is that they have been unable to get the required quantity and meet the SEBI and stock exchange regulations in terms of the minimum number that they need. Like in your example, they keep falling short of the higher number. The quantitative number is too high.�

And even if that high threshold is reached-the battle isn�t quite won. Once the company delists at say, a 90% threshold, what about the remaining 10%. No regulation forces them to sell or squeezes them out!

So promoters may pay the price, get the response and yet never own 100% of their companies.

Cyril Shroff, Managing Partner, Amarchand Mangaldas says, �The lacuna in India is because of the lack of a squeeze out. Once you give this sort of ability for sellers to fix a high price, logically it should be accompanied by a squeeze out provision. Namely once you cross a particular threshold say 95% the acquirer should be able to squeeze out the minority.�

Or else they could hold you to ransom for a long time!!! And even take you to court over pricing as Essar Steel discovered. It took the company an entire year to delist.

So your stock's going for a pittance and you want to go private - if you're lucky you'll succeed at doing so by this time next year. Unless new delisting norms are put in place. Last year's concept paper to amend the delisting guidelines is still hanging fire.

Li & Fung sticks to acquisition strategy on sales growth

Nov. 7, 2008 (China Knowledge) - Hong Kong-listed Li & Fung Ltd, the world's leading consumer goods exporter, will stick to its aggressive acquisition strategy to further boost its sale growth in the second half of this year despite the global financial turmoil and economic recession, according to Bruce Rockowitz, president of Li & Fung.

Rockowitz said the company has sufficient cash right now, with quite a number of M&A potential objects.

Li & Fung has posted acquisitions worth at least US$1.1 billion in the past two years.

Reportedly, Li & Fund has been involved in bidding for a 15% stake in Future Logistics Solution Ltd, a logistic and supply chain subsidiary of India-based Future Group.

In August, the Hong Kong-based consumer goods exporter clinched a deal to acquire the U.S.-based handbag importer Van Zeeland Inc to become a leading handbag supplier in the U.S., as per industry sources.

Li & Fung announced earlier that its first-half net profit reached HK$1.24 billion, up 18% from the same period last year, boosted by an organic growth in operation and increased acquisition deals. The company targets to hit a turnover of US$20 billon by 2010, up from around US$12 billion at present.

Wilson Sons Limited 9M08 EBITDA Up by 25.1% Year-Over-Year, at USD 82.8 Million 26.9% growth in 3Q08 net revenues over 3Q07, reaching USD 132.4 million

Wilson Sons Limited ("the Company" or "Wilson, Sons") reports today results for 3Q08 and 9M08. Through its subsidiaries, the Company (Bovespa: "WSON11 BZ") is one of Brazil's largest providers of integrated port and maritime logistics and supply chain solutions. With a business track record of over 170 years, the Company has developed an extensive national network and provides a comprehensive set of services related to domestic and international trade, as well as to the oil and gas industry. Its principal activities are divided into the following business segments: port terminals, towage, logistics, shipping agency, offshore, and non-segmented activities.
3Q08 net revenues were up by 26.9% over 3Q07, reaching USD 132.4 million. Year-to-date, net revenues improved by 32.7%, reaching USD 380.8 million. Wilson Sons' strong performance in 3Q08 and 9M08 derived, mainly, from activities in port terminals, logistics, and the offshore businesses, which, combined, represented almost 60% of The Company's total net revenues in the quarter. Its shipyard also contributed positively to 3Q08 results, from shipbuilding activities for third parties.
3Q08 consolidated adjusted EBITDA was up by 3.1%. Year-to-date, EBITDA results ended significantly higher (+25.1% compared to 9M07), helped mainly by a better mix of services and improved overall performance year-over-year, mainly at the Company's port terminals, towage and offshore businesses.
3Q08 and 9M08 CAPEX figures reached USD 23.2 million and USD 59.7 million, respectively, mainly invested in the acquisition of new equipment, construction activities for new tugboats, capacity expansion at Tecon Rio Grande, and leasing of equipment for logistics.
The Company's full Earnings Release is available on line at www.wilsonsons.com/ir

Ryder to acquire Transpacific Container Terminal and CRSA Logistics

Ryder System has reached agreement to acquire substantially all the assets of Transpacific Container Terminal Ltd (TCTL) and CRSA Logistics (CRSA), as well as CRSA's operations in Hong Kong and Shanghai, China.

The acquisition is expected to be finalised in late-November, and is subject to closing conditions.

Both TCTL and CRSA are headquartered in Port Coquitlam, British Columbia.

CRSA Logistics provides trans-Pacific end-to-end transportation management and supply chain services for Canadian retailers, and TCTL operates a Canadian network of off-dock import/export container terminal facilities.

This strategic acquisition would add complementary solutions to Ryder's capabilities including consolidation services in key Asian hubs, as well as deconsolidation operations in Vancouver, Toronto and Montreal.
Once the acquisition is finalised, Doug Stewart, president of TCTL and CRSA Logistics, along with David Seath, vice president of CRSA Logistics, will continue to lead the Canada-based and Asian operations as part of Ryder's management.

DSV Road acquires Unicargo

DSV Road has signed an agreement to acquire 100% of the shares in Unicargo.

The acquisition is subject to approval by the Norwegian competition authorities, at which time the companies will be consolidated.

Unicargo specialises in road freight forwarding to Eastern Europe and Turkey. The acquisition will strengthen DSV's position in Norway in terms of freight forwarding to Eastern Europe and the Balkans.

DSV intends to integrate the company into the Norwegian DSV Road Division.
The parties have agreed not to disclose the acquisition price.

Agility signs agreement to acquire Baisui Logistics

HONG KONG—In an effort to expand its domestic network in China, Agility (formerly PWC Logistics), a global provider of integrated supply chain services, recently announced it has signed an agreement to acquire Shanghai-based Baisui United Logistics.

According to an Agility statement, Baisui is a domestic logistics services provider focused on intra-city and regional long-haul transport and warehousing for the chemicals, automotive and fast-moving consumer goods sectors. Baisui has 300 employees in 15 China-based locations, and it manages eight logistics centers, has its own trucking fleet and partners with more than 75 trucking companies for regional distribution needs.

An Agility spokesman told LM this deal is part of its “global strategy to grow dramatically during the next three-to-five years,” adding that Agility has already purchased a number of heavy weight players in different sectors in the industry, including project logistics, international freight forwarding and contract logistics. Some recent acquisitions made by Agility include: Geopetrol International Limited, a freight forwarding and logistics services provider focused on the Canadian oil and gas market, in September, and Cosa Freight, a full service ocean freight forwarder with 200 employees in six China-based locations, in June.

Baisui and Cosa Freight, among other acquisitions, are viewed by Agility as “tuck in” plays to augment its existing network and range of services with niche capabilities that strengthen its offering in vertical markets.

In terms of how Agility will integrate Baisui’s employees, the spokesman said it will incorporate more than 300 staff members from Baisui into the Agility network, and they will be working across a number of offices in China, including Shanghai, Shenzhen, Tianjin, Wuhan, Nanjing and Chongqing.

“They will be working in logistics centers, trucking operations, as well as in freight forwarding,” explained the spokesman.

Agility now has 40 offices in 27 China-based locations with more than 1,500 employees.

“Baisui Logistics complements our growing service offering in China, both vertically in specialist sectors and by providing improved connectivity through the company's extensive domestic transport network,” said James Gagne, Chief Executive Officer, Greater China Area, Agility, in a statement. “We will continue to grow organically and through acquisition in order to provide our customers with an integrated logistics solution throughout China.”

Dutch group taking over shipping business for P5b

CEBU-BASED Aboitiz Equity Ventures Inc. has agreed to sell its entire shareholdings in its listed transport firm to KGLI-NM Holdings Inc. for P5 billion, signaling its exit from the transport and logistics business.

KGLI-NM is a 60-40 joint venture between Negros Holdings and Management Inc., the holding firm of Negros Navigation Co. and Dutch company KGL Investments BV.

Aboitiz Equity told the stock exchange that it had accepted KGLI-NM’s unsolicited offer to buy out Aboitiz Transport System Corp., operator of the SuperFerry vessels and the Philippines’ largest passenger and cargo shipping firm.

Aboitiz Transport also operates an express delivery service and a cold storage chain.

KGLI-NM will acquire Aboitiz Equity’s 77.1 percent and Aboitiz and Co.’s 15.9- percent stake in Aboitiz Transport based on its equity value of P2.022 a share, or a total of P5 billion.

Aboitiz and Co. is the Aboitiz family’s private holding firm and is the largest shareholder in Aboitiz Equity.

If the deal goes ahead, KGLI-NM will make a tender offer for the shares owned by minorities at the same terms offered to Aboitiz Equity and Aboitiz and Co.

“Except for the joint venture business in ship management, manning and crew management, and bulk transport of the Aboitiz group with Jebsen Group of Norway, the planned acquisition will include all shipping and logistics businesses of [Aboitiz Transport System],” Aboitiz Equity said.

Aboitiz Transport started in business on May 26, 1949, when it put up William Lines Inc., a passenger and cargo shipping company based in Cebu.

In 1995 the company consolidated its resources and expertise with Carlos A. Gothong Lines Inc. and Aboitiz Shipping Corp., two other Cebu-based companies, and that gave rise to William, Gothong & Aboitiz Inc. or WG&A.

In 2002 the Aboitiz group acquired the combined holdings of the Chiongbian and Gothong Group and then changed its transport firm’s corporate name to Aboitiz Transport from WG&A.

Aboitiz Transport operates eight vessels and sails to 15 ports of call.

The company reported a net income of P16.8 million for the six months to June 2008, down from P366.6 million in the same period last year as a result of skyrocketing fuel prices.

But revenues rose 9 percent to P6 billion from P5.5 billion after freight receipts, the bulk of the company’s revenues, climbed 12 percent to P3.7 billion.

KGL Investments started investing in port and logistics businesses in the Philippines when it set up an air transport logistics complex in Clark Field, Pampanga.

Later, KGL Investments, through KGLI BV, invested in Negros Navigation by putting up KGLI-NM Holdings Inc.

Metro Pacific Investments Corp. had previously owned Negros Navigation before it decided to sell its 83.7-percent stake in the shipping firm to Negros Navigation Holdings, a company owned by the members of Negros Navigation’s present management, in 2006.

Ceva signs deal to buy Varan Kargo

Ceva Logistics Turkey, part of the global logistics giant Ceva, has signed an initial agreement to acquire Turkey's Varan Kargo for an undisclosed sum yesterday.

“Varan is the first logistics firm in Turkey, and also so far the most established in its field. The firm's name is also well-known in the country, which is important,” said Aslan Uzun, managing director of Ceva Logistics Turkey.

Ceva, owned by international private equity investor, Apollo Management, is the world's fourth largest supply chain management company. The firm's Turkish branch was established in 2000 as TNT Logistics, and today employs some 400 people and has 200,000 square meters of storage space. Ceva employs more than 54,000 people in more than 100 countries globally.

DB Schenker to buy Romanian firm

DB Schenker is aiming to acquire the entire shares in Romanian forwarder S.C. Romtrans, and has submitted a takeover bid to the Romtrans shareholders today through its Austrian subsidiary Schenker and Company.

The deadline for acceptance of the bid is the end of October.

Subject to the approval of the authorities, the transaction should be completed by December of this year.

This acquisition is expected to consolidate the leading position of the Deutsche Bahn transportation and logistics division, which operates worldwide under the DB Schenker brand.

Tuscan Ventures acquires 40 per cent stake in Singapore firm

MUMBAI : Mumbai-based logistics company, Tuscan Ventures on Sunday said it has picked up a 40 per cent stake in Singapore-based Rasmussen & Simonsen International (RSI) for an undisclosed sum.

The investment will allow RSI to fund its global expansion plans.

This include setting up a dedicated office in India and other growing markets such as China and Middle East, Tuscan's Managing Director, Vishal Sharma said in a release here.

"The global shipping and logistics industry will need to recruit and train 500,000 professionals over the next decade. As the industry shifts its focus to technology, a well trained work force will emerge as the true competitive advantage," Sharma said.

RSI's product offerings include customized and off-the-shelf instructor-led training programs and e-learning modules developed specifically for the industry.

Tuscan Ventures has offices in Mumbai and Singapore and has 40-years of in-house experience in the global maritime and logistics sector.

Matson Acquires Pacific American

Matson Global Distribution Services, a subsidiary of Matson Integrated Logistics, completed the acquisition of Pacific American Services, a regional, asset-light warehousing, packaging and distribution company specializing in value-added handling of domestic, import and export goods.

The acquisition adds nearly 1 million square feet of warehousing and distribution space to Matson's Northern California network and provides a West Coast complement to Matson's recent 700,000 square-foot expansion of its facilities on the East Coast in Savannah, Georgia.

Based in San Leandro, Calif., in the San Francisco Bay area, PACAM serves hundreds of local, national and international customers and has extensive industry expertise in handling high value goods in the food and beverage, high tech and consumer packaged goods sector. The company is ISO 9001-2000, organic and FDA certified and an approved Foreign Trade Zone facility.

"PACAM provides Matson Global with an excellent opportunity to further develop our distribution capabilities for a diversified customer base," said Brian K. Howver, vice president and managing director for Matson Global.

Agility Acquires Geopetrol in Canada

Leading logistics provider expands its presence in the international oil and gas industry with latest acquisition

Agility, a leading global logistics provider, today announced the acquisition of Geopetrol International Limited, a top freight forwarding and logistics company specializing in the Canadian oil and gas market.
Geopetrol's range of services include all aspects of freight forwarding, including air, ground, sea freight, customs clearance, and warehousing. The company has a special focus on project logistics, including heavy lift and oversize cargo shipments, as well as other specialized project forwarding services for the Canadian oil and gas industry.
With offices located in Edmonton and Calgary, Alberta, and St. John's, Newfoundland, Geopetrol has a strong customer base throughout the country. These locations now add on to Agility's network of over 550 worldwide offices and 32,000 employees.
"Geopetrol is a strong addition to Agility's operations in Canada and contributes the necessary talent and expertise we require to expand our oil & gas and project cargo offerings," said Mark Soubry, Chief Executive Officer of Agility Canada. "This acquisition gives us strategic capabilities to tackle the growing opportunities within Canada and into other international oil and gas markets," he said.
Customers will greatly benefit from the combined synergies of the two companies, according to Larry Weischwill, SVP Americas of Agility Project Logistics.
"Strengthened operations will offer customers better services and solutions through Agility's extensive global network and focus on personal service," he said.
"It is a pleasure for us to be a part of the huge Agility network," said Ron Hedlund, President, Geopetrol, in Edmonton. "Their geographic reach and broad portfolio of services will be of great advantage to Geopetrol, while our specialized services and the niche market will indeed be an additional asset to Agility worldwide."

YRC Worldwide Acquires Shanghai Jiayu Logistics Co., Ltd.

Acquisition extends YRC Worldwide portfolio of services in China with reliable ground transportation

YRC Worldwide (Nasdaq: YRCW) today announced that YRC Logistics
successfully closed its acquisition of Shanghai Jiayu Logistics Co., Ltd.,
one of the largest providers of truckload and less-than-truckload ground
transportation services in China. With over 30,000 customers, 1,800
employees, 200 locations and a network of more than 3,000 vehicles, Jiayu
provides an ideal platform for YRC Worldwide to support the needs of both
local Chinese customers and large multinational companies with
transportation requirements in China.

"By virtue of Jiayu's mature network and well developed operational
resources, we can help our customers to improve transportation reliability,
compliance, data integrity and visibility for their shipments in China,"
said Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Shanghai
Jiayu Logistics represents a key link in building an end-to-end supply
chain capability."

YRC Logistics acquired 65 percent of the stock of Jiayu for US $44.7
million. YRC Logistics expects to purchase the remaining 35 percent
interest in 2010, for an amount not to exceed US $39 million, as determined
by the level of Jiayu's 2008-09 financial performance.

Jim Ritchie, President and CEO of YRC Logistics added, "Since entering
into the agreement with Jiayu in December 2007, we have seen strong
customer interest, and we believe the comprehensive services have a
tremendous appeal to the China market and to our customers based in the
U.S."

YRC Logistics, a wholly-owned subsidiary of YRC Worldwide, is a global
logistics company. Based in Overland Park, Kansas, and with offices in
North America, Asia, Europe and South America, YRC Logistics enables
companies to improve their transportation network and overall supply chain
efficiency by offering flexible logistics solutions supported by Web-hosted
technology and global logistics management capabilities.

YRC Worldwide Inc., a FORTUNE 500 company and one of the largest
transportation service providers in the world, is the holding company for a
portfolio of successful brands including Yellow Transportation, Roadway,
Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF
Glen Moore. The enterprise provides global transportation services,
transportation management solutions and logistics management. The portfolio
of brands represents a comprehensive array of services for the shipment of
industrial, commercial and retail goods domestically and internationally.
Headquartered in Overland Park, Kan., YRC Worldwide employs approximately
60,000 people.

CPC Logistics acquires Huron Services Group

MISSISSAUGA, Ont. -- CPC Logistics has moved into the Canadian market, establishing a Canadian company called Logistics Professionals Ltd. and then promptly acquiring Huron Services Group.

CPC specializes in contract truck driver and related logistics services. It will use its acquisition of Huron Services Group to enhance the resources of its existing Canadian operations and to assist in expanding operations in Alberta, Ontario and Quebec, the company said in a release.

"We had been aware of Huron's outstanding reputation for providing high quality logistics services in Canada. They have been in business for 40 years and their philosophy for customer service and cooperation mirrors ours," announced John Bickel Sr., president of CPC Logistics. "When this opportunity was presented to CPC we immediately took steps to close the transaction as soon as possible."

"We are proud to join the CPC Canada family," added John Thomson, president of Huron Services Group. "CPC's excellent service and dedication to finding, together with their customers, mutually beneficial solutions to a variety of logistics and transportation issues are values which we have always held as priorities with our customers. We are pleased to be able to call upon the vast and value added services and resources that CPC, as a North American logistics leader, can offer in support of the services we can bring to our customers."

Arcapita announces acquisition of CEPL - leading European warehouse logistics operator

ArcapitaArcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, today announced that it and its affiliates have signed a definitive purchase agreement to acquire Compagnie Européenne de Prestations Logistiques (“CEPL”), a leading European warehouse logistics service provider, from French private equity firm Sagard, and current management. Terms of the transaction were not disclosed but the deal ranks as the largest LBO in France this year.

CEPL, headquartered in Béville le Comte, France, operates across 23 sites in France and Germany, and has approximately 2,200 employees.

Founded in 1998, CEPL provides clients with a single managed central location from which it prepares detailed orders for individual retail outlets on a national, pan-European or global basis. The current management team, led by Thierry Ortmans, CEO and founder, and Akim Lamrani, COO, will continue in their current roles and have increased their equity investment in the business.

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said “This is one of the few transactions of this size in Europe to have secured LBO financing in these tough market conditions, which attests to the quality of the business, as well as the strong reputation that Arcapita has built within Europe.”

Arcapita managed the transaction out of its London office. Mounzer Nasr, head of Arcapita’s European Corporate Investments added “Through their dedication to exceptional levels of service and operational excellence, Thierry Ortmans and his highly motivated management team have built up a very high quality portfolio of customers within a short time frame. Arcapita currently owns more than 5 million square meters of industrial warehouse facilities globally, and the acquisition of CEPL has the potential for significant synergies with our existing portfolio of logistics investments. We look forward to working with the current management team and employees, and investing in CEPL’s next phase of growth.” Arcapita’s portfolio of industrial warehouses is one of Europe’s largest, and it has recently added Pinnacle, a fast growing industrial warehouse developer and operator in Central and Eastern Europe, to its existing investments in the sector.

Thierry Ortmans, CEO and founder of CEPL said: “We are extremely pleased to have secured investment from an international partner of the caliber of Arcapita. This is an important milestone in the development of CEPL and we believe that with their experience in the sector, Arcapita will be a valuable partner as we continue the international growth of CEPL.”

Financing for the transaction was provided by a consortium of banks including RBS, SocGen, Calyon and ING.

Owens & Minor Announces Plans to Acquire The Burrows Company, a Midwest-based Medical & Surgical Supply Distribution Business

Owens & Minor (NYSE: OMI: 46.02, +0.30, +0.65%) announced today that it has signed a definitive agreement to acquire certain assets and liabilities of The Burrows Company, a Chicago-based, privately-held distributor of medical and surgical supplies to the acute-care market. For the year ended December 31, 2007, The Burrows Company reported revenues of $603 million. Owens & Minor will pay $30.2 million for the net assets of The Burrows Company and will assume the company's debt. The final purchase price will be subject to certain post-closing adjustments. The acquisition is expected to be slightly dilutive to Owens & Minor's earnings for the remainder of 2008. However the company's guidance for diluted earnings per share for 2008, including the impact of the acquisition, remains unchanged at $2.30 to $2.40.

"The acquisition of The Burrows Company, a large regional distributor with more than 75 years of experience in the acute-care market, is a strong geographic fit for Owens & Minor," said Craig R. Smith, president & chief executive officer of Owens & Minor. "The Burrows Company has a great reputation for customer service and operational excellence, and we are very excited about the prospect of bringing on this new business in the fall. Based on the success of our most recent acquisition, we are preparing a conversion plan that will provide customers with an orderly transition. Once the transition is concluded, we expect to leverage the revenue base and introduce these customers to the benefit of our value-added programs and services, as well as our supply-chain management expertise."

The transaction is expected to close in the fall, pending regulatory approvals. Immediately following the close of the transaction, Owens & Minor will launch a conversion process designed to transition The Burrows Company customers to Owens & Minor's systems by the end the second quarter of 2009. Subsequent to closing, Owens & Minor will provide additional detail on the transaction.

The Burrows Company, headquartered in Chicago, has served the acute-care provider industry's medical and surgical distribution needs since 1932, and is the nation's largest independently owned medical/surgical distributor of branded products in the country. The Burrows Company aims to help customers control and reduce health care expenditures, as well as achieve measurable savings and supply chain efficiencies. To learn more about the company, visit its website at www.burrowsco.com.

Owens & Minor, Inc., (NYSE: OMI: 46.02, +0.30, +0.65%) a FORTUNE 500 company headquartered in Richmond, Virginia, is the leading distributor of national name-brand medical and surgical supplies and a healthcare supply-chain management company. Owens & Minor is also a member of the Russell 2000(R: 69.13, +2.42, +3.62%) Index, which measures the performance of the small-cap segment of the U.S. equity universe, as well as the S&P SmallCap 600, which includes companies with a market capitalization of $300 million to $2 billion that meet certain financial standards.

With a diverse product and service offering and distribution centers throughout the United States, the company serves hospitals, integrated healthcare systems, alternate care locations, group purchasing organizations, the federal government and consumers. Owens & Minor provides technology and consulting programs that improve inventory management and streamline logistics across the entire medical supply chain--from origin of product to patient bedside.

Deutsche Bahn Plans to Acquire Romtrans, FT Deutschland Says

Deutsche Bahn AG plans to buy Romtrans SA, a Romanian transport company, FT Deutschland reported, without saying where it got the information.

The purchase, costing 80 million euros ($118 million) to 100 million euros, would enable Berlin-based Deutsche Bahn to expand in the rapidly growing eastern European market, the German newspaper reported. Deutsche Bahn also foresees the acquisition helping boost interest in the initial public offering of the DB Mobility Logistics AG train division in which it aims to sell a 24.9 percent stake in late October, FT Deutschland said.

Romtrans reported sales of 78 million euros in 2007 and has a workforce of 1,300, the newspaper reported. The company isn't ``especially profitable,'' FT Deutschland said, citing unidentified people familiar with the company.

UPS said to be near buying European delivery service

Speculation surged (again) Friday that UPS plans to buy TNT NV, Europe’s No.2 express-delivery service.

Amsterdam-based TNT’s stock rose nearly 7 percent after The Times (of London) reported the deal may be done as soon as this weekend.

The Times said UPS would pay 34 euros to 38 euros per share, though the paper did not cite a source. That would mean a bid in the range of $19 billion to $21.3 billion.

But on-again, off-again rumors have persisted for years that UPS or its chief rival, Memphis-based FedEx, was on the verge of buying TNT. It’s unclear whether the latest flare-up is real or investor speculation intended to trigger a TNT stock rally.

Sandy Springs-based UPS had little official comment. “UPS will never discuss rumors and speculation about mergers or acquisitions,” spokesman Norman Black said.

If it came to pass, the acquisition would be the company’s largest by far.

Recent news reports have been varied.

In July, The Financial Times reported FedEx had the deal tied up, giving TNT’s stock its biggest boost since the company went public in 1998.

Then in early August, European news agencies said that UPS would bid more than $15 billion for TNT.

UPS controls about 10 percent of the European express business and buying TNT would add about 15 percent, according Satish Jindel, president of SJ Consulting in Pittsburgh. It would also make UPS the No. 1 express carrier in Europe; German-owned DHL is first with 22 percent of the market.

The speculation coincides with a big UPS deal back home. DHL wants to outsource its North American air cargo shipments to UPS. That proposed deal is getting political scrutiny in Washington because it would result in the closure of a Wilmington, Ohio, air hub and critics have raised antitrust concerns. If completed, DHL would become a $1 billion-per-year customer of UPS.

Two U.S. analysts have been skeptical about recent reports of a TNT deal, though they said it would make sense for UPS or Fedex some day.

Jon Lagenfeld, a transportation/logistics analyst for Robert W. Baird & Co., wrote the following in a note to clients on Aug. 11: “Speculation emerges that UPS now [is] looking to acquire TNT. Speculation of a TNT takeout has persisted for years, so we hesitate to draw any conclusions; however, we believe the deal would be strategically positive for either FedEx or UPS. We believe FedEx needs TNT more than UPS, but UPS could afford to pay more.”

Baltimore-based analyst David Ross with Stifel Nicolaus completed the picture. “Ultimately,” he said in an interview Friday, “it might make sense for UPS or FedEx to acquire TNT to gain a stronger foothold in Europe. It makes more sense for FedEx because UPS has a stronger presence in Europe.

“We give no more credibility to this [rumor] than others,” said Ross, whose firm supplies investment banking services to both FedEx and UPS. If one of the American companies bought TNT, the success of the acquisition would depend upon the price paid and the integration strategy, he said.

Either carrier would probably want to sell TNT’s mail division, which is “non-core” to the express package delivery business, he said.

TNT started as a public mail company in the Netherlands. It has grown to compete with FedEx, UPS, DHL and CH Robinson Worldwide. TNT is in 200 countries, has more than 159,000 employees, and had revenues of Euros 11 billion in 2007 — or $16.28 billion in today’s dollars.

According to Ford Equity Research, TNT also has made some inroads into Asia. TNT has created a road network linking 120 cities in China, where UPS also is making significant investments.

Still, there is nothing convincing Ross that now is the time for UPS to strike.

“We don’t think the current market is any more or less favorable than the last few years,” he said.

UPS stock closed Friday at $63.52, a 2 percent gain.

Direct Logistics eyes cos in N America & Europe

MUMBAI: After acquiring Chinese logistics firm Shenzen Dida, Mumbai-based Direct Logistics has firmed up plans to acquire two freight forwarding companies — one each in North America and Western Europe — for a total cost of Rs 400 crore.

Confirming the development, Direct Logistics CMD Sunil Devrani told ET that the proposed acquisition is in line with the company’s plan to enhance its global presence. “The recent increase in trade volume in the US and Europe from India and China would help the company if it has presence in these foreign shores. The acquisitions will help Direct Logistics derive better economies of scale by having operations in India and other countries.”

Direct Logistics acquired Shenzhen Dida for an undisclosed sum last year. The foreign company has sales of around Rs 25 crore. It has a strong presence in Southern China and Hong Kong. Direct Logistics hopes that its Chinese business will contribute around 60% to its total business in three years.

Mr Devrani said Direct Logistics may go for an IPO in the near future. Moreover, the company is also looking at venture capital funding to fund its growth requirements. Sidbi Venture Capital, the venture capital arm of Sidbi, had picked up an 11 per cent stake in Direct Logistics for Rs 15 crore two years ago.

Direct Logistics is planning to set up offices in Shenzhen, Shanghai, Foshan, Beijing, Qingdao and Tianjin. It also plans to set up a pan-Asia network, including countries such as Singapore, Taiwan, Vietnam, Thailand, and to earn around Rs 100 crore from these countries in the next couple of years.

It has ambitious expansion plans at home too. The company plans to set up nine offices in India. The list of these locations include Pune, Jaipur, Ludhiana and Coimbatore. Now, the company operates from all metro cities.

Tuscan Ventures acquires 12.45% stake in LCL Logistix

Tuscan Ventures has invested in LCL Logistix, formerly LCL Agencies, one of India`s largest freight forwarders and 3PL services provider with 33 offices and 400+ employees.

This investment, which gives Tuscan Ventures a 12.45% ownership stake in LCL Logistix for an undisclosed sum, comes in the backdrop of burgeoning trade to and from India and the increasing propensity of the trade to engage professional and experienced service providers to manage their supply chains effectively.

Head quartered in Mumbai, LCL Logistix`s core product and service offering includes tailored containerised logistics solutions to all major destinations globally. In addition, LCL Logistix offers fixed weekly less than container load and project cargo handling services to all major corridors.

Tuscan Ventures specializes in value creation through operational excellence in supply chain, logistics and transportation infrastructure. With offices in Mumbai and Singapore, Tuscan Ventures` unique value proposition is to build operating businesses within the wider shipping, logistics and transportation sector in India and South East Asia, while making strategic financial investments which are synergistic to its operating businesses. Tuscan Ventures has over 40 years of combined in-house experience in the global maritime and logistics sector including container shipping, ports, supply chain management, vessel operation and management.

Oreport Taken Over By Grindrod Group

GRINDROD, the shipping and logistics group, has acquired the remaining 50% stake it did not already own in Oreport, an industrial raw material procurement specialist, for an undisclosed amount.

Grindrod acquired a half share in Oreport in 2005 for R40m, which provided the company with access to new cargo markets.

At the time, the company said Oreport would contribute R8m-R10m to its bottom line.

"There are a number of synergies between the value chain of Oreport and services and businesses of the wider Grindrod group. This acquisition provides opportunity for further growth of our trading division," Grindrod company secretary Craig Robertson said last week.

The acquisition already has regulatory approval. Last month, the Competition Tribunal unconditionally approved the merger between Grindrod and Oreport.

Oreport sources and transacts trade in cargoes including alloys, steel, coal and minerals.

Robertson said the deal provided diversification benefit as the company was now involved in agricultural commodities, fuels and industrial products.

Grindrod's trading division owns both Atlas Trading & Shipping, which focuses on agricultural commodities, and Cockett Marine Oil, which deals with marine fuel and lubricants.

"The businesses within the trading division, especially Atlas Trading & Shipping and Oreport, often provide base load cargo for the group's owned and operated vessels," said Brendan McIlmurray , CEO of Grindrod's trading division.

Nashville firm buys second Knoxville delivery company

For the second time this year, Nashville-based CrossTown Courier has purchased a Knoxville delivery company. CrossTown’s latest acquisition is Dowers Delivery Service, which provides freight services throughout East Tennessee, North Alabama and North Georgia.

Financial terms were not disclosed.

“It fits completely perfectly with our warehouse and distribution operations,” CrossTown President Steven Seger said Tuesday.

Dowers major customers are The Mattress Outlet and Mattress Gallery, according to a news release issued by CrossTown.

CrossTown provides transportation, logistics, and warehouse distribution for customers throughout the Southeast. The company has warehouse and office facilities in Chattanooga, Knoxville, Memphis, and Nashville.

Although the economy has been sluggish in recent months, CrossTown is committed to growth through acquisition, Seger said.

CrossTown is considering other possible acquisitions in the Knoxville area, but Seger declined to identify the companies.

In May, CrossTown acquired the business operations of ASAP Courier of Knoxville, a provider of scheduled trucking and on-demand expedited transportation services. ASAP’s customers included UPS Supply Chain Solutions, Averitt, Old Dominion Freight Lines and Central Transport.

Earlier this year, CrossTown also acquired Premiere Express Courier in Chattanooga.

More news as it develops online and in Wednesday’s News Sentinel.

Ryder Agrees to Acquire Philadelphia-Based Gordon Truck Leasing

Ryder System, Inc. (NYSE: R), a global leader in transportation and supply chain management solutions, today announced it has reached an agreement to acquire substantially all the assets of Gordon Truck Leasing, a full service truck leasing, commercial truck rental, and fleet services company headquartered in Philadelphia, Pa. The acquisition is expected to be finalized later this month and is subject to customary closing conditions.

"Gordon Truck Leasing is a high quality and well-managed transportation service provider with a strong reputation in the metropolitan Philadelphia area," said Ryder Chairman and Chief Executive Officer Greg Swienton. "We are pleased to be able to add new customers to our existing locations, as well as provide them with the additional services and solutions for which Ryder is recognized in the industry."

Per the terms of the transaction, Ryder will acquire Gordon's fleet of approximately 430 full service lease units, 45 rental units, and 35 held-for-sale units and approximately 130 contract customers of Gordon Truck Leasing currently served by its five locations in the Philadelphia market.

"Ryder has been a reputable market leader for 75 years supporting more than 16,000 customers globally," said Drew Gordon, President and Owner of Gordon Truck Leasing. "Ryder will be able to provide Gordon's customers with new resources, increased product offerings, and a large network of service locations which will help customers grow in the competitive marketplace."

SATS to come under MMC fold under RM1.95b deal

Low-profile tycoon Tan Sri Syed Mokhtar Albukhary, who controls MMC Corp Bhd, is injecting Senai Airport Terminal Services Sdn Bhd (SATS) into the group in a RM1.95bil deal.

Under the exercise announced yesterday, MMC would finance the acquisition with the issuance of 696.43 million new shares at RM2.80 each. This would transfer ownership of SATS, which is reportedly privately held by Syed Mokhtar, to MMC.

Encompass Group Finalizes the Acquisition of Tritronics Inc.

NEW YORK--(BUSINESS WIRE)--Encompass Group Affiliates, Inc. (OTC Bulletin Board: ECGA), an integrated company serving the consumer electronics segment of the reverse logistics industry, announced today that it has completed the acquisition of privately held Tritronics Inc. An industry-leading original equipment manufacturer parts distributor for over thirty years, Tritronics has operations in Baltimore and Miami, and distributes consumer electronic replacement parts and accessories to thousands of independent service dealers and OEM authorized service centers throughout the United States and Mexico.

The Company acquired all of the outstanding equity interests in Tritronics in exchange for consideration consisting of $9 million in cash, a subordinated promissory note in the principal amount of $1 million and an equity interest in the Company in the form of approximately 2.8 billion restricted shares of the Company’s common stock.

The acquisition and related transaction costs were financed from the issuance of Series B subordinated notes from the Company’s existing lending sources and the sale of approximately $4.2 million of Series E redeemable non-convertible preferred stock to certain of the Company’s existing investors, principally to an affiliate of H.I.G. Capital, LLC.

Wayne I. Danson, Encompass Group’s president and chief executive officer explained the strategic impact of the acquisition. “With Tritronics joining the Encompass family of companies, our distribution power is dramatically enhanced. It immediately enables us to expand our distribution from a largely institutional base to include thousands of smaller independent service centers and authorized service centers operating throughout the United States.” said Danson. “Coupled with its sister company, Vance Baldwin, Tritronics will also expand our service and value-added offerings, and adds the proven management talent of Tritronics’ Kim Wagner, Randy Williams and Jim Scarff, each of whom will continue to manage and operate Tritronics’ business.”

Danson noted that, “The Tritronics acquisition follows Encompass Group’s recent designation as the sole primary North American digital parts distributor for Philips Electronics. These two events will result in an immediate growth in our distribution business of over 50%, less than one year after our acquisition of Vance Baldwin.” stated Danson. “We believe this is another major step forward in executing our strategy to be a vertically integrated full-service provider in the reverse logistics segment of the consumer electronics industry.”

Kim Wagner, President and CEO of Tritronics, agreed that the synergies resulting from the acquisition would create a powerful market advantage. “Our family continues to be committed to the independent consumer electronics repair industry. Now, by joining forces with a dynamic and growing organization such as Encompass Group, we’ll be better positioned to offer a broader range of value-added services to our customers” said Wagner. “We are very excited about this milestone in the company’s long history.”

For the fiscal year ended April 30, 2008, Tritronics recorded sales revenue of approximately $21.8 million (unaudited).

EBRD secures minority stake in Russian transport group for $120 million

The FINANCIAL -- The European Bank for Reconstruction and Development has, through a private placement, acquired for $120 million an equity stake representing 3.8 percent of the ordinary shares of OJSC Far-Eastern Shipping Company (FESCO), Russia’s major integrated inter-modal freight transport company combining shipping, railways and port facilities.

The acquisition will give the EBRD a stake in the overhaul of the Russian transport market through FESCO’s innovative strategy of creating, as Russia’s third largest shipping company, a broad-based logistics operator providing a single service chain for its customers. The investment will give the Bank the right to have a representative on the Company’s Investment Committee.

Thanks to its spread of strategic transport assets stretching from the Baltic Sea to Vladivostok in the Russian Far East, FESCO is well placed to capitalise on Russia’s growing foreign trade and its booming volumes of transit shipments on Asia-Europe routes. The company is focusing on its container logistics segment, an area of potential high growth in view of the relatively low use of containers to date.

The EBRD welcomes FESCO’s commitment to improve the company’s corporate governance and environmental procedures and is pleased to become a shareholder of the company which is pioneering integrated inter-modal services in Russia , said Sue Barrett, the EBRD’s Director for Transport.

The EBRD’s acquisition of its stake follows an offering made by FESCO of new shares comprising 25 percent of the Company’s share capital. The new share issue raised $637 million.

Keith Taylor Logistics buys SCS Logistics

Keith Taylor Logistics (KTL) has acquired the assets of the SCS Group of Companies including SCS Logistics. A spokeswoman for KTL, which is part of the TG Group, says it does not want to make any comment on the acquisition.

However, a statement on the company website says: "TG Group has embarked on a joint venture with an American venture capital business to create a pan-European logistics business. "Keith Taylor Logistics is a full service logistics provider and is actively seeking to acquire logistics-related businesses located throughout the UK and Europe.

"We are particularly interested in businesses that are in administration but are available for purchase as a going concern." KTL specialises in warehousing, transport and distribution, road haulage and freight forwarding. The company has just moved into a new, fully operational 105,000ft2 warehouse at a secure site in Northampton.

C.H. Robinson Worldwide acquires Transera

MINNEAPOLIS—Non-asset based third party logistics (3PL) services provider C.H. Robinson Worldwide Inc. said today it has acquired certain operating subsidiaries of Transera International Holdings (Transera), a Calgary, Alberta-based freight forwarder.

Financial terms of the acquisition were not disclosed. Transera has 107 employees and annual gross revenues of approximately $125 million, according to a C.H. Robinson Worldwide statement. It was established in 1985 and is a non-asset based global project forwarder, providing North American and global transportation of over-dimensional and heavy-lift shipments, with customers in the oil, gas, mining, and wind power industries, the statement added.

C.H. Robinson Worldwide Vice President of International Forwarding Jeff Scovill told LM that the company has a growing number of customers requesting it to handle their project cargoes. This, he said, was a major driver in the company’s decision to acquired Transera.

“This is especially important in the global environment, with the movement of manufacturing facilities and continued expansion of C.H. Robinson into industries that are well aligned with over-dimensional cargoes,” said Scovill. “This acquisition adds substantial expertise to the organization for these cargoes and will allow us to expand our service offerings to clients requesting project related services.”

Scovill also commented that Transera’s brand recognition, a well aligned customer base with long-term relationships, employee expertise, and its strong history of growth and track record of success made them stand out amongst their competition, when C.H. Robinson was looking at potential acquisition targets.

From a shipper-service perspective, Scovill explained that this acquisition makes sense, because C.H. Robinson's growing customer base is requesting services of over-dimensional, overweight cargoes, and the company is receiving requests within the industry to provide services similar to what Transera already does.

“The addition of Transera to the C.H. Robinson network allows us to continue to more fully integrate into the supply chain with these accounts, providing a broader range of services,” he said. “In addition, it also opens up opportunities to provide a similar breadth of services to existing Transera accounts, adding value to their customer community.”

Two well-known industry experts said this deal makes sense from a strategic perspective for C.H. Robinson.

“This purchase is a logical add-on for CHR, which has been very successful expanding its Canadian & International operations,” said Richard Armstrong, president of Armstrong & Associates, a supply chain consultancy. “Adding project logistics is a natural expansion for [the company].”

And JP Morgan analyst Tom Wadewitz wrote in a research note that this acquisition is a strategic positive for C.H. Robinson, because it adds new capabilities and further broadens its footprint in the freight forwarding arena.

REpower Systems AG looks to acquire it's logistics partner Schaumann GmbH

REpower Systems AG has made its long-time logistics partner Schaumann GmbH & Co KG an offer to purchase its vehicle fleet and other operating assets as well as to acquire of all its employees.

By means of this acquisition, REpower intends to secure important transport capacities for wind turbines and at the same time contribute to maintaining the jobs of Schaumann’s more than 30 employees. In the medium term, REpower expects a competitive advantage from integrating the logistics acquisition into its business model due to increased flexibility with regard to shipments, which will also contribute towards a reduction of costs. Both parties have agreed to maintain confidentiality regarding the purchase price.

Originally, the owner-operated heavy-load carrier business was due to shut down at the end of July. The planned transaction envisions the transfer of the vehicle fleet, the other operating assets and the carrier’s team of employees to a yet-to-be-established wholly owned subsidiary of REpower Systems AG. For this purpose, the staff members are to receive an offer to maintain their contracts within the new company. Furthermore, REpower shall assume existing rental agreements made by Schaumann.

Among other things, the agreement is subject to an expert evaluation of the Schaumann vehicle fleet and is to be completed by the end of August, at the latest.

Per Hornung Pedersen, CEO of REpower Systems AG was quoted as saying; “Over the past years, Schaumann has always been a reliable logistics partner for us. On the one hand, we are happy that we are able to secure capacities for our heavy-load shipments by means of this agreement and, on the other, we can contribute towards securing over 30 jobs. We hope that all employees concerned, if possible, will take advantage of the option to continue their employment with us and wish, by this means, to extend them a warm welcome to the REpower Group. We also hope that integrating a logistics company will make a positive contribution to operating results in the medium term.”

Chilled logistics acquisition: Dachser takes over Tank

Dachser takes over Tank

International logistics provider Dachser is to take over chilled goods forwarding company Tank, having acquired 100% of its shares for an undisclosed sum.

Both companies provide chilled goods logistics, refrigerated transport services, as well as warehousing. Tank is based in Hohenwestedt in northern Germany, and operates from sites at Hohenwestedt, Hamburg, Hanover, Breman and Zeven. Dachser Food Logistics is based in southern Germany and has a full-coverage network throughout the country, thus complementing Tank's activities, which are concentrated in the north.

IBM To Acquire Software Maker ILOG For $340 Million

IBM said the acquisition will strengthen its portfolio of so-called business process management software.

IBM (NYSE: IBM) said Monday that it has reached an agreement to acquired ILOG, a French developer of software that helps businesses manage logistics and back office operations.

Under the deal, IBM will pay about $340 million to buy ILOG. The amount represents a 37% premium over the NASDAQ-listed company's closing share price Friday. ILOG's board of directors said it expects to formally approve the transaction prior to September 15.

The deal also requires a nod from antitrust authorities in the U.S. and Europe.

IBM said the acquisition will strengthen its portfolio of so-called business process management software. BPM tools allow companies to knit together discrete processes, such as order taking and shipping, to create automated supply and fulfillment chains.

"Companies across all industries are looking for technologies to help them manage their processes with more flexibility so they can keep up with changing business conditions," said Tom Rosamilia, general manager for IBM's WebSphere group, in a statement.

ILOG's customers include blue chippers like American Express, Samsung, GlaxoSmith Kline and MetLife. It maintains operations in Europe, the U.S. and Asia.

IBM has partnered with ILOG for the past decade. Increasingly, however, Big Blue is looking to acquire key software partners in order to hasten their product development cycles and time-to-market.

Absorbing mid-tier players also lets IBM combine their products with its own in ways that are more seamless than what can be achieved through partnering, said Buell Duncan, general manager for IBM ISV and developer relations, speaking earlier this year about the company's $5 billion acquisition of Canadian business intelligence software vendor Cognos.

"We can share technology roadmaps and work more closely day to day to build on each other's strengths," Duncan said. "You can do that if you're one company much more quickly and capably," he said.

IBM has announced 12 acquisitions so far this year.

RoadLink Acquires American Freight Systems, Inc.

RoadLink, the largest private independent intermodal logistics service provider in North America, announced recently the purchase of Vancouver, Wash.-based international intermodal trucking service provider American Freight Systems, Inc. (AFS). The third such acquisition of this year, this transaction further supports RoadLink's position as the leading provider of intermodal transportation and specialized warehousing services in North America.

With major operations centers in Vancouver, Wash., and the ports of Tacoma, Wash., and Portland, Ore., AFS moves freight between these ports and a shipper's or consignee's location with a fleet of 55 company-owned trucks and super chassis, and 16 Independent Contractors. Started in 1998 by John Rogers, AFS has grown by providing reliable service throughout the region.

"By leveraging our import, export and regional transportation network, my team and I focused on building a business based on customer service," said Rogers, "Our staff is excited about joining the RoadLink team and they know they can add immediate value to their regional services. AFS's customers should see immediate benefits."

After a short transition period, AFS will implement RoadLink's industry-leading TrueVision operating technology, which can provide customers with visibility of their freight from their inbound cargo ships all the way to the floor of their operating facility.

As trade with the Asia-Pacific region continues to grow, the ports in the Pacific Northwest will become even more important. The combination of efficient port operations, coupled with reduced transit times between Asia and the Northwest, continue to fuel the growth in this region. According to Chris Munro, President and Chief Executive Office of RoadLink, "AFS's presence in these markets, which are positioned for significant growth, combined with RoadLink's North American infrastructure will be a strategic advantage for all of our customers."

AFS joins Seattle, Wash.-based West Coast Trucking (WCT) and C-Truck (the Canadian trucking portion of Hapag-Lloyd) as RoadLink's third acquisition in 2008, and along with RoadLink's newly announced strategic relationship with Canada-based Fenway portfolio company Fastfrate, dramatically enhances the company's intermodal network across North America. "Customers will benefit from the great synergies that result from these relationships, being able to select from either a single comprehensive, end-to-end solution or individual best-of-breed services, depending on their specific circumstances and requirements," continued Munro.

Following the conclusion of the transaction, John Rogers will continue on as a consultant to the RoadLink team to ensure a smooth transition, and AFS will be officially rebranded as RoadLink to fully harness the power of this acquisition for customers.

Eagle Logistics founder to fly again

Former Eagle Global Logistics (EGL) founder and CEO Jim Crane has announced his re-entry into the freight-forwarding sector in August, with the establishment of Crane Worldwide Logistics.

The new company will be headquartered in Houston, targeting USD 1 billion in revenue with around 4,000 employees over the next five to seven years, Analytiqa reported.

In the new venture, Mr Crane will be chairman of the board, joined by a number of former colleagues at EGL. Its management team has appointed John Magee as chief executive officer and Keith Winters ad chief operating officer.

Crane Worldwide Logistics is set to operate in more than 40 countries, with its focus laid on Asia/India sub-continent, the Americas and Europe.

The headquarters will strictly abide by Quality, Health, Safety and Environment (QHS&E) guidelines, complying with the US Environmental Protection Agency’s SmartWay Transport Partnership to cut emissions, air pollution and mitigating the impact on fuel on the environment.

Mr Crane’s departure from EGL came when CEVA Logistics acquired the company last year by outbidding him. He had expressed his intention to take the company private.

Brisbane transporter buys assets of liquidated carrier

Brisbane-based transporter Personalised Freight Management (PFM) has come to the rescue of the Queensland operations of another national carrier on the verge of collapse.

PFM will purchase the assets of specialist transport and logistics operator SEND Australia after the company was liquidated last week.

Sydney-based logistics group AirRoad will acquire SEND’s assets in other states.

SEND, or Sensitive Electronic National Distribution, called in liquidators last week at 9pm on Thursday night.

Speaking to Queensland Business Review, Nicholas Crouch from liquidators Crouch and Amirbeaggi says the company has been "saved from the depths" by the last-minute deal.

SEND specialises in the transport and warehousing of specialist electronics equipment for broadcasting, data processing, medical and other applications.

The company was an amalgamation of a number of state-based transporters aligned under the SEND banner and headquartered at Homebush in Sydney.

But while the alliance was supposed to deliver efficiencies across the group, liquidators say the merger was botched and led to the company’s demise.

Problems escalated when the Australian Tax Office (ATO) issued penalty notices to directors for tax in arrears.

Crouch says the directors were reluctant to enter a repayment plan with the ATO and make further capital advances, so they decided to wind up the company.

Crouch and his team began a "quite frantic search" to sell the assets of the business, working 14-hour days through the weekend to secure the sale today.

Drivers and staff were asked back to work this morning, resuming trading in anticipation of the deals being secured.

All drivers are expected to keep their jobs, Crouch says, but some administrative staff could be lost as back offices are merged into the new owners. There is also expected to be some consolidation in facilities.

Administration of the companies will now be handled through the PFM headquarters at Archerfield in Brisbane and AirRoad’s head office in western Sydney.

SEND had previously been in negotiations about ownership but wasn’t able to negotiate a deal. AirRoad were among the companies who had expressed interest before the liquidation.

Crouch believes key management were "not up to the job" in merging the businesses under the SEND umbrella, which resulted in them falling behind in tax obligations.

"Individually the company at a state level was a success, but when they went about consolidating them … the move was poorly effected," he says.

But he says the business operations have a "sound basis fundamentally".

Key customers of the business include Siemens and Schenker.

Total asset sales are expected to net about $1 million, which will be used to pay secure creditors led by the ATO.

PFM calls itself an Australia-wide transport operator specialising in fragile freight. It has depots in Townsville, Sydney, Canberra, Melbourne, Adelaide, Western Australia and Tasmania.