Geodis is set to strengthen its position in US markets following the acquisition of Tennessee-based third party logistics (3PL) provider Ozburn-Hessey Logistics (OHL).
The European supply chain operator – 100% owned by SNCF Logistics – has not disclosed the purchase price but is thought to be in the region of $800 million.
The transaction is subject to the usual regulatory approvals.
Founded in 1951 and based in Brentwood, Tennessee, OHL is currently owned by private equity firm Welsh, Carson, Anderson & Stowe (WCAS). Its annual revenue is reported at €1.2 billion.
“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,” Geodis' CEO, Marie-Christine Lombard, said. “Likewise, Geodis offers a second to none global footprint for North American corporations and the clients of OHL seeking to grow internationally.”
She added: “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.”
Employing over 8,000 staff and with an annual revenue reported at €1.2 billion, OHL operates more than 120 distribution centres in North America and has warehousing stock of around 350,000 sqm.
It provides integrated global supply chain management solutions including transportation, warehousing, customs brokerage, freight forwarding, and import and export consulting services.
OHL serves a broad range of business sectors – fashion, consumer electronics, healthcare, food and drinks, and consumer packaged goods. Its customer portfolio is said to include Starbucks, Apple, Red Bull and General Motors.
The US aside, it has international offices in Canada, Hong Kong, the Chinese mainland, Malaysia, Singapore, Taiwan, Vietnam, Australia, the UK and the Netherlands.
A relatively weak presence in the US to date has been perceived as hampering Geodis' development in becoming a top-ranking player in the sector.
Of Geodis’ annual revenues of €6.8 billion, around 12% – or around €800 million – was generated in the Americas region, which along with the US also includes Brazil and Mexico and this will increase significantly with the addition of OHL.
Earlier this year, Geodis unveiled plans to harmonise its commercial branding in the latest stage of its ongoing strategic re-positioning.
The company announced that the existing brands – Geodis Calberson, Geodis Wilson, Geodis BM, Geodis Logistics and Geodis Supply Chain Optimization – will disappear to be replaced by one stand-alone brand, Geodis.
The various business brands dated back to diverse acquisitions made over the last decade and earlier, under which the acquired businesses gained the Geodis name but also retained their former identity.
Geodis now operates under one single brand through five lines of business: Supply Chain Optimization, Freight Forwarding (formerly Geodis Wilson), Contract Logistics, Distribution & Express (ex-Geodis Calberson) and Road Transport (formerly Geodis BM).
