Deutsche Bahn (DB) announced that it signed a purchase contract on Tuesday to acquire a 100percent shareholding in US freight forwarder Bax Global Inc. from the US-based The Brink’s Company.
The acquisition sum was not disclosed but had been previously reported at up to one billion euros.Bax Global will be merged into DB logistics subsidiary Schenker, making it into the world’ssecond-largest air cargo forwarder.DB chairman and CEO Hartmut Mehdorn said: “Bax fits our strategy perfectly and is an idealcomplement to our logistics subsidiary Schenker. With these two companies, DB AG is now one of theworld’s leading companies in the transportation and logistics sector.” In particular, theacquisition would enable the German rail group to significantly expand its position as aninternational logistics services provider in the key growth markets in the Asia/Pacific region, andalso in China and the USA.
As a result of the acquisition, DB Logistics will increase its revenues to just under 15 billioneuros. “With Bax, we will significantly expand our position in air and sea freight, which areparticularly important for the global supply chains that are constantly growing in demand,” saidSchenker chairman and CEO Thomas Held. Schenker would substantially enhance its presence in theNorth American market and strengthen its logistics business.
Bax Global offers worldwide air and sea freight forwarding services, domestic transportationservices and supply chain management, and has a strong blue-chip customer base, primarily in thefields of electronics and consumer goods. In the first three quarters of 2005, Bax generatedrevenues of $2.04 billion compared to $1.75 billion in the comparative period of the previous year.The operating income in this nine-month period rose to $47.2 million from $30.1 million in theprevious year.
