Geodis is in exclusive negotiations to acquire the Northern and Southern Europe divisions ofGiraud, the third-largest road freight carrier in Spain and a major player in France. The SNCF
Geodis division meanwhile slumped to an operating loss of €49 million in 2009.Following the acquisition of Giraud’s Steel division and Central and Eastern Europe division inJuly 2009, this acquisition of its two remaining divisions in Northern Europe and Southern Europewill allow Geodis to expand its European coverage, particularly in Spain. Giraud is also present inItaly and the UK.
Geodis said it is an opportunity to increase revenues through a portfolio of loyal key accountsoperating in the sectors including automotive, retail and distribution, industry, etc. The groupadded that the transaction will be concluded very quickly, after employees have been informed andafter approval by the competition authorities, who are expected to rule on the acquisition by theend of the first half of 2010.
“For Geodis BM, this acquisition is an opportunity to build a true European network and to playa full role in the group’s global end-to-end offering. With this new network, the revenue of GeodisBM will exceed €1 billion, based on the expertise of its 5,000 employees,” declared Jean-LouisDemeulenaere, CEO of Geodis.
“Giraud’s corporate culture is close to ours,” said Olivier Melot, director of the Geodis Roaddivision. “It has a centralised organisation, strong culture of operational excellence andmanagement tools that are similar to ours. These factors, along with our successful experience withthe Steel division and Central and Eastern Europe division, augur well for a successfulintegration.”
Geodis BM is the group’s road transportation unit providing pan-European services including fulland part loads, transport on request, dedicated transport, rental, direct flows or flows viaplatforms, distribution and inter-site rounds. It employs 3,500 staff.
The Giraud division in Northern Europe primarily focuses on shipping full or partial truckloadsby using the company’s own resources including 260 tractors and trucks and chartered resources. In2009, it generated revenues of €76 million with 450 employees. The Southern Europe division has 244employees with a fleet of 353 tractors and trucks. It generated revenues of €105 million in2009.
The Giraud acquisition follows two other acquisitions announced this month. Last week, Geodisacquired Ciblex, the fourth largest parcel and express operator in France for an undisclosed sum tostrengthen its position in the domestic market. Earlier this month, Geodis acquired the Italiancontract logistics operator Bertola Servizi Logistici to expand its presence in Italy.
Geodis itself was acquired by French rail operator SNCF as a wholly owned subsidiary in August2008. Following a subsequent reorganisation, the new SNCF Geodis division now incorporates Geodis,the freight logistics company, and SNCF Fret, the French railfreight operator.
In 2009, SNCF Geodis made an operating loss of €49 million compared to an operating profit of€269 million in 2008. Revenues dropped 8.1% to €7,377 million and by 16.1% on a like-for-like basisexcluding non-recurring effects, parent group SNCF announced yesterday. The French transport andlogistics industry was heavily impacted by the economic crisis, it noted.
SNCF noted that without Fret SNCF, which is known to be heavily loss-making, the division’sresults would have been €318 million better than in 2008. More detailed figures for Geodis were notannounced.
