Acquisition activity continues in the global logistics industry, with Kuehne + Nagel, Geodis and Scan Global Logistics all pursuing strategic acquisitions to expand their coverage.
Kuehne+Nagel announced on 6th June 2023 its acquisition of Morgan Cargo, a prominent South African, UK, and Kenyan freight forwarder specializing in perishable goods transportation. With over 40,000 tonnes of air freight and 20,000 TEU of sea freight handled in 2022, Morgan Cargo brings valuable expertise and a strong network of logistics experts to Kuehne+Nagel. The acquisition aligns with Kuehne+Nagel’s growth strategy, expanding its presence in high-growth markets and enhancing its perishables logistics services. The deal is expected to close in Q3 2023, subject to regulatory approvals.
GEODIS announced its acquisition of ITS on the 2nd of June 2023. International Transport & Shipping Ltd is a Swiss freight forwarder. The move is part of GEODIS’ strategic plan to establish a comprehensive global end-to-end network that caters to its customers’ needs. ITS has established itself as a trusted partner in the Swiss freight forwarding industry. In addition to its specialized services, ITS also provides standard ocean freight, general cargo services, and ancillary services like oil and food transportation, event logistics, artwork transportation, and customs brokerage. With 26 employees and reported revenues of CHF 58 million in 2022, it is a relatively small acquisition.
Scan Global Logistics, a global freight forwarder, has announced, on 5th June 2023, the signing of an agreement to acquire ETS Transport & Logistics GmbH and ETS Fulfillment GmbH, both based in Germany. The acquisition is part of Scan Global Logistics’ strategic focus on expanding its presence in the German market, which is the fourth-largest logistics market in the world and a significant global trading partner. Founded in 2002, ETS operates from Bremen, with a branch in Hamburg and two fulfillment warehouses in Gudensberg and Neu Wulmstorf. The acquisition will enhance Scan Global Logistics’ geographical footprint in Northern Germany.
Each of the three deals represents strategic moves by the involved logistics companies to expand their footprint and capabilities. Kuehne+Nagel’s acquisition of Morgan Cargo seems to be a strong strategic move for Kuehne+Nagel. Morgan Cargo’s specialisation in perishable goods transportation aligns with Kuehne+Nagel’s intent to enhance its perishables logistics services. GEODIS’ acquisition of ITS allows GEODIS to strengthen its presence in the Swiss market, a region known for its high-value and precision industries. ITS offers a range of specialized and standard services, suggesting a versatile business model that could help diversify GEODIS’ service offerings. Scan Global Logistics’ acquisition of ETS Transport & Logistics and ETS Fulfillment appears to be a part of Scan Global Logistics’ strategy to penetrate the German market, the fourth-largest logistics market in the world. Given that ETS has multiple locations in Germany, including two fulfillment warehouses, it can significantly enhance Scan Global Logistics’ geographical and service footprint in the region.
Source: Ti Insights
Author: Paul Chapman
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