News / AIT extends its worldwide reach with European acquisitions

AIT Worldwide Logistics is expanding its reach at a blistering pace. On Tuesday, the US company completed the takeover of Lubbers Logistics Group, following news on 1 February that it was acquiring Global Transport Solutions, both logistics players based in the Netherlands.

And in December, there was an agreement to buy Mach II, a UK-based specialist in life sciences and pharma logistics with an offshoot in the Netherlands.

In less than four months AIT has acquired three European logistics firms, which has increased its footprint there to make it the company’s second-largest region, after the US, and the group now has well over 3,500 people on its payroll.

AIT did not disclose any financial details of the agreements, but chairman and CEO Vaughn Moore said the company was “equipped with a well-filled war chest to move ahead”.

However, while always on the look-out for acquisitions that match its culture and focus on time-critical, value-added services, it was not bent on a major shopping spree at this point, he added.

Building its presence in Europe was one of AIT’s strategic imperatives. Beyond strengthening its presence in that market, the expansion enables the company to build up tradelanes between its locations in Asia and Europe, Mr Moore said.

There is also a strong intra-European objective in the acquisition of Lubbers, through the Dutch company’s European trucking network of 18 locations and nine transport hubs. Once the integration is completed, Mr Moore is thinking of replicating the Middle Mile Network AIT unveiled in the US last year.

This is a network covering over 90% of major US metropolitan areas, marketed as “an affordable, more secure, speedier alternative to traditional expedited less-than-truckload service”. It launched in November with some 160 lanes and hubs in import/export gateway cities like Atlanta, Chicago, Los Angeles and Dallas. According to AIT, average transit time in the network is one to two days shorter than in typical LTL operations.

According to Mr Moore, the service has been well received in the market and more lanes and hubs have been added, but the network growth is slowing.

“We’re a little conservative on our expansion now,” he said, adding that he expects the first half of this year to be still “a bit rocky” for the industry.

Beyond European expansion, the new acquisitions all involve firms with a strong focus on time-sensitive services, and they largely serve the verticals AIT has concentrated on. Mr Moore described Mach II as “a nice tuck-in for us”, complementing the US company’s work with life science and pharma companies. And besides its road transport operations, Lubbers provides forwarding services in the project logistics and oil & gas sectors, matching AIT’s services to energy companies in the Houston area.

Specialising in time-critical marine spare parts logistics, Global Transport is a bit of an outlier, but this business is in line with AIT’s focus on time-sensitive activities and a high use of airfreight, said Mr Moore, who regards this vertical as a promising addition to AIT’s portfolio.

“This is somewhat recession-proof. Ships are always in the water and need spares, even when they’re not moving. This flattens out some of the volatility of other verticals,” he added.

While marine spares, operating under the Marinetans brand, is Global Transport’s core business, it also offers time-critical solutions and general forwarding for other industries, including life sciences, as Best Global Logistics.

Mr Moore makes no secret that AIT’s expansion is not over, and one area in his sights is Eastern Europe, once hostilities wind down.

The company has enjoyed growth in South-east Asia, but he is not looking to expand through takeovers there, preferring organic growth. The same approach applies to Latin America.

Between integrating the three latest acquisitions, pursuing said organic growth and expanding in its home market, AIT should have enough on its plate to keep busy in the coming months.