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.

Edelweiss Capital mandated to find PE investors for Deccan Cargo

Aviation entrepreneur G.R. Gopinath, founder of the country’s largest low-fare airline Simplifly Deccan (erstwhile Air Deccan), has mandated Mumbai-based investment banking firm Edelweiss Capital Ltd to seek out private-equity investors for his new cargo airline.
Gopinath, who owns 100% of Deccan Cargo, plans to dilute up to 26% of his stake and eventually list the company to provide private equity investors an exit opportunity, said a person familiar with the development, asking not to be identified.

Deccan Cargo plans to invest $200 million (about Rs863 crore) over the next three years, the person said.
Infosys Technologies Ltd, India’s second largest software exporter, has won the mandate to design and implement technology that will allow Deccan Cargo to offer online “track and trace” facilities for customers, and help cut costs, this person also added.
Gopinath, now vice-chairman of Deccan Aviation Ltd after liquor baron Vijay Mallya’s Kingfisher Airlines Ltd took over the airline, has registered a new company named Deccan Cargo and Express Logistics Pvt. Ltd for executing the cargo airline venture.
Gopinath confirmed the appointment of Edelweiss Capital but didn’t provide further details.
He also said Deccan Cargo is in talks with all leading technology companies.
Calls and text messages to an Infosys Technology spokeswoman did not elicit any response.
“Capt. Gopinath is relying on IT infrastructure. He thinks IT will help him to provide innovation in his cargo venture apart from cutting down several operational costs,” the person mentioned earlier said.
Deccan Cargo plans to acquire 10 bigger dedicated cargo planes from Toulouse-based airplane maker Airbus SAS, he added.
A logistics expert said a dedicated cargo airline has business potential, but Deccan Cargo would succeed only if it has complete ground infrastructure to complement its wide-body Airbus planes.
“Logistics is a complex process involving various factors including movement, storage, distribution and re-distribution of cargo seamlessly. Therefore, merely having an airline network will not help Deccan Cargo,” said the expert, who didn’t want to be identified.
Setting up infrastructure at airports involves considerable investment and more players are entering the scene, the industry expert noted.
“Deccan Cargo will be an end-to-end logistics company,” said Gopinath. “The idea is to connect across the country and other parts of the world in future.”
Several other Indian companies are looking to tap the growing demand for movement of cargo by air. Domestic freight traffic increased to 423.43 tonne between April and December, up 8.1% from a year ago, according to Airports Authority of India, or AAI.
Jet Airways (India) Ltd and Kingfisher Airlines, India’stop two private airlines, intend to start dedicated cargo operations.
Bangalore-based Quikjet Cargo Airlines Pvt. Ltd, Hyderabad-based Flyington Freighters Ltd, Mumbai-based Avicore Aviation Pvt. Ltd and New Delhi-based Aryan Cargo Express Pvt. Ltd are also drawing up plans to enter themarket.
“However, these plans by passenger airlines seem unlikely as they are making huge losses in the backdrop of skyrocketing jet fuel prices,” said the same person mentioned earlier.

Laxey acquires TDG in £203m deal following 'put up or shut up' ruling

TDG, the logistics group that runs J Sainsbury's supply chain, has been acquired by Laxey Partners in a deal that values the business at £203m.

The Isle of Man investment group is offering 250p a share in cash for TDG or 200p a share for TDG and 6.625 shares of LIT, a newly formed acquisition vehicle that will be traded on Aim.

Laxey said the offer represented a 21.5 per cent premium over the average closing price of 205.8p a TDG share for the three months before discussions were announced, on February 27.

Shares in TDG closed up 18¾p at 242½p.

The Takeover Panel, which governs mergers and acquisitions in the UK, had given Laxey until Friday to make a firm offer after TDG appealed in May for a "put up or shut up" ruling.

Laxey, which is keen to gain control of TDG's real estate assets, beat several rival bidders, including Wincanton, which transports goods for Tesco.

TDG's future has been in flux since February when Laxey made an informal approach equivalent to 275p a share, some months after TDG discovered that Laxey had built up a 22 per cent shareholding in the logistics group.

Laxey's informal advance was followed in April by an indicative offer from Wincanton, valued at 290p a share. After Laxey completed due diligence in May, it said it was interested in making a cash offer for TDG but this hinged on securing financing and the TDG board's recommendation.

Laxey is subscribing for up to £90m of LIT shares at 10p each to fund the proposals - depending on the level of acceptances received for the alternative offer - and to provide future working capital to LIT.

The proposals are to be implemented by means of a scheme of arrangement.

Laxey's move highlights the ability of private equity groups to finance deals in the mid-market in spite of the credit squeeze.

But data released by the Centre for Management Buyout Research this week showed that buy-outs in the mid-market - deals between £100m and £500m - had slowed. During the first half of 2008 the total value of deals was just £3bn, compared with £7bn last year.

Stobart acquires Innovate chilled goods operations

Stobart Group Ltd has acquired the chilled and ambient goods operations of Innovate Logistics Ltd from its administrators BDO Stoy Hayward, in an effort to broaden its chilled distribution operations in the UK.

“This is a low risk way of increasing our presence in the chilled market, giving our customers more choice and flexibility. It is entirely in-line with our strategy of building the Group,” Andrew Tinkler, Chief Executive of Stobart Group, said.

Innovate contracts

Under the terms of the acquisition, announced Tuesday July 1, the Cumbria-based transport company will take on a number of Innovate Logistics contracts, including a warehousing operation with Nestle.

The Innovate operations are expected to generate turnover of around £100million a year and to be earnings enhancing in the first full year of ownership, Stobart said in a statement.

It also expects to transfer around 1,300 existing employees of Innovate Logistics to Stobart.

Group

The Group will license 280 tractor units, 350 trailers and the associated warehousing from the administrators for an initial six month period in order to service the contracts with the option of assuming the leases thereafter, the statement continued.

The enlarged Group will now have more than 1,800 trucks, 3,200 trailers and will employ over 5,300 people in 40 locations across the UK, Ireland and Europe.