APL Logistics to acquire GATX Logistics; price tag: US$210 million
The investment company that acquired GATX Logistics last year said yesterday that it had signed an agreement to sell the Jacksonville, Florida, operation to Neptune Orient Lines (NOL) of Singapore for US$210 million.
APL Logistics, the supply-chain management division of NOL and which is based in Oakland, California, would operate GATX Logistics, the name of which would be folded into APL over the next six months.
GATX Logistics is one of the largest logistics operators in the Western Hemisphere. It provides a variety of warehousing and freight-management services. The company operates 93 locations commanding 21 million square feet in 35 markets. Its transportation network's 700 tractors and trailers cover about 20 million miles a year. The company has about 3,000 employees.
Dick Metzler, CEO of APL Logistics, which provides an array of services in 52 countries, said in a statement posted on the NOL corporate website that the acquisition would increase the unit's revenues by 70 percent, or more than $300 million.
"There is an excellent fit between the two organizations," Metzler said in the statement, "and the real beneficiaries of the new combined entity will be our customers. GATX Logistics manages distribution from their warehouses to the final outlet for clients, which completes the global supply chain for APLL [APL Logistics] and adds to our ‘menu' of services."
Flemming R. Jacobs, NOL Group's president and CEO, added: "APL Logistics has now begun to realize the plans developed from the studies we commissioned when we turned our attention to accelerating the growth of APL Logistics after setting right the fundamentals of the Liner business."
Jacobs said that the logistics unit has seen annual growth in recent years of more than 20 percent. He added that the logistics division would be charged with "aggressive goals," including challenging the liner business as the company's chief revenue source. The GATX acquisition, APL Logistics' first big one, sets a course for others and for partnerships, Jacobs said.
"This is just the beginning of what I expect to be a very exciting period for APL Logistics," Jacobs added.
Oak Hill Capital Partners, which purchased GATX Logistics from Chicago-based GATX Corp. last May, said that the transaction included GATX eLogistics, an e-commerce fulfillment services company launched early last year. Oak Hill said it expected the deal to be completed early this year, pending approvals.
Oak Hill said in a statement posted to GATX Logistics' website that it and its partner, the Stephens Group, got several unsolicited proposals to buy GATX Logistics last year. The company said that the offers illustrated rapid consolidation in the logistics sector.
"We remain very enthusiastic about the prospects for the logistics industry in general and GATX Logistics in particular," Oak Hill Managing Partner Daniel L. Doctoroff said in the statement. "While we are long-term strategic investors, the exceptional growth platform and synergies inherent in this combination coupled with the value created for our shareholders make this a compelling opportunity. In our association with GATX Logistics, we have been greatly impressed with the quality of management as well as the company's strong operating performance."
The container-transportation company APL is also part of the NOL Group.
With contribution from Michael Lear-Olimpi, Managing Editor, Logistics Online. Reach him at mlear-olimpi@verticalnet.com.
Source: GATX Logistics and Neptune Orient Lines