Monday, August 17, 2015

Major European Supply Chain and Logistics Outfit Acquires Significant US 3 PL Supplier

French Group Expanding After Consolidating Business as One Brand
Shipping News Feature

FRANCE – US – WORLDWIDE – Geodis, the French based supply chain operator and 100% owned subsidiary of SNCF Logistics, has entered into an agreement to acquire OHL (Ozburn-Hessey Logistics) for an undisclosed amount. OHL, headquartered in Nashville, Tennessee is one of the largest 3PL outfits in North America. With in excess of 120 distribution centres worldwide and over 36 million square feet of warehouse space, OHL was undoubtedly a juicy target for the French group which sealed the deal, subject to the usual regulatory approval, with current owners private equity firm Welsh, Carson, Anderson & Stowe.

OHL covers the full range of logistics services mainly concentrated on the apparel, electronics, healthcare, food and beverage, and consumer packaged goods sectors, producing an annual revenue of around $1.2 billion. The company employs over 8,000 staff globally, including a UK operation, and all branches will adopt the new consolidated Geodis brand in time. Randy Curran, CEO of OHL commented:

“We are excited to join forces with Geodis and look forward to the extended reach of a worldwide Group. Both organizations have a long tradition of finding world class supply chain solutions for customers in pursuit of the superior customer experience.”

Once again it is the global activity which Geodis covets that has spawned this deal. With over 30,000 personnel operating in 67 countries under the lately unified Geodis banner this acquisition instantly lifts the group’s current $6.8 billion revenue up around 18%. Analysts estimate the bid to be in the region of $800 million. Marie-Christine Lombard, CEO of Geodis observed:

“We are proud to welcome the customers and employees of OHL to Geodis and to provide our global customers with OHL’s expertise and presence in the North American market. Likewise Geodis offers a second to none Global footprint for North American corporations and the clients of OHL seeking to grow internationally. Bringing together the complimentary customer portfolios and capabilities, combined with the great cultural fit of both companies makes outstanding strategic sense for Geodis. We look forward to our enhanced offer to even better serve our clients as their growth partner.”

Photo: ‘Storage, Moving and Rug Cleaning’ since inception in 1951 OHL has always been prepared to investigate ways to serve its customers thoroughly!