Acquisition-hungry SGL scoops up fast-growing NZ forwarder Orbis
Scan Global Logistics (SGL) has bought New Zealand up-and-comer Orbis Global Logistics in its third ...
Scan Global Logistics has snapped-up Werner Global Logistics (WGL), the air and ocean forwarding arm of major US trucking brokerage Werner Enterprises.
WGL serves customers in the US, Mexico and China, its international forwarding operations generating $53m in 2020, and Werner said it would continue to provide North American truck brokerage, freight management, intermodal and final-mile services.
WGL is the latest in a string of acquisitions for Danish forwarder SGL after it was bought in 2016 by AEA Investors, a US private equity firm.
In September, Scan announced it would merge with US-based TransGroup Global and in October purchased PostNord’s Swedish air and ocean activities.
The forwarder said yesterday: “Throughout the global pandemic, Scan has been on an expansive journey entering markets in new countries and increasing activities in Austria, Belgium, Poland, Czech Republic, the Netherlands, Spain, Germany and Sweden.”
Scan’s Asia CEO Rickard Ingvarsson told The Loadstar: “We have set forth an ambitious global growth strategy for the next three-to-five years that will see SGL rise through the ranks of the international logistics world. The planned growth will be achieved both organically, by starting up new greenfield SGL offices, and through carefully selected M&A.”
He said WGL was “a perfect fit” for the company, giving it access to Mexico, “a vibrant and exciting marketplace”, while also boosting SGL’s business in the US and China.
“Automotive, pharma, fashion and retail are just some of the verticals we’ve been working with and developing in Mexico over recent years,” Mr Ingvarsson added.
In the US, SGL could now collaborate with Werner, a top-five player in US domestic road activities, including long-hauls, regional and expedited van services and cool chain.
Meanwhile, as SGL’s latest acquisition comes amid the increasing volatility in global freight markets, Mr Ingvarsson said Covid had “changed the rules of engagement” in the industry.
He explained: “We are seeing more expansion of services and changes of direction, with ocean carriers entering the world of freight forwarding and forwarders acting as carriers.
“There will be further consolidation among the forwarders and carriers of all sizes, and these seem to appear in cycles and less due to the pandemic, even if this may in certain cases speed up decisions due to companies being harder hit financially – while others have benefited – leaving doors open for acquisition.”