First Large Acquisition for APL Logistics
'Increases the Size of the Business by 70%,' Says Metzler
'Just the beginning,' Says Jacobs
OAKLAND, Calif., and SINGAPORE, and LONDON, Jan. 8 /PRNewswire/ -- APL
Logistics (APLL) is purchasing GATX Logistics, which is the second largest
warehouse-based contract logistics company in the United States and one of the
top logistics players throughout North and South America. GATX Logistics is
majority owned by Oak Hill Capital Partners L.P. and the Stephens Group, USA.
The US$210 million acquisition increases APL Logistics' revenues by 70% or
over $300 million. Further details are undisclosed.
APLL is the supply-chain-management arm of the Singapore-based NOL Group,
which is engaged in global transportation and logistics business.
GATX Logistics, headquartered in Jacksonville, Florida, operates
approximately 21 million square feet (2 million square metres) of warehousing
space throughout the Americas and is a sophisticated supply-chain-management
company, providing integrated logistics solutions to many blue chip companies,
and with growing operations throughout Latin America.
GATX Logistics will transition to the APL Logistics brand name over the
next six months.
Said Dick Metzler, CEO of APL Logistics, "This is an excellent example of
the type of acquisition that fits our aggressive growth plans. The GATX
Logistics team, under the leadership of Joe Nicosia, has built a
technologically advanced and highly focused organization, which is what we
have been looking for to support our growth goals.
"There is an excellent fit between the two organizations," Mr. Metzler
said, "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 and adds
to our 'menu' of services.
"It means a cost-effective, time-definite, end-to-end regional and global
supply-chain management for retailers, automotive and other companies who
source internationally," Mr. Metzler said.
This means, for example, Mr. Metzler said, that a toy retailer with both
Internet and traditional store sales will have visibility of their products
right from their factory in China to the store or to the customer's door.
"The close fit means savings for APLL as we expand further, because what
we are purchasing is not just a warehousing company but a system of
warehousing logistics and integration, and a business model, that can be
replicated globally. This will save us investment in our own warehouse
management and transportation management systems.
"This is more than one plus one making two, or even three," Mr. Metzler
said. "It equals more like five because of the synergies between the service
offerings. Better inventory visibility allows customers to proactively manage
changes in demand and exceptions at any point along the supply line. This not
only reduces their costs but creates more revenue because they can better
control their inventory flow. Our customers tell us that this kind of
proactive management is non-existent today."
Mr. Metzler also commented on GATX Logistics' strength in information
technology. "I am particularly impressed by the way technology has been used
to enable total inventory visibility to their customers. It is compatible
with our own internet-based suite of products known as NetTrac and will give
additional depth and breadth to the services we provide to our customers.
"The emphasis that we put on e-commerce is mirrored at GATX Logistics,
where they have developed a separate e-fulfillment business," Mr. Metzler
said. "E-commerce is the ticket for admission to bids for overall supply
chain management for many of our larger customers. It is a big growth area
and we can leverage strongly on the combined customer base of both
organizations.
"It's also what allows true factory-floor-to-store or customer-door
visibility and fulfillment," he said.
"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," said Flemming R. Jacobs, President and CEO of the NOL Group.
Mr. Jacobs added, "The two studies, which concentrated on customers'
needs, showed us the road to take, where to develop existing capacity and
where to invest in strategic growth. We now have the vision, the management,
the structure, and the plans in place to respond to what our customers tell
us.
"We have set aggressive goals for APL Logistics -- to challenge the Liner
business as the major breadwinner in our Company in a relatively short time.
That means joint ventures, acquisitions and partnerships on top of the healthy
organic growth rate of more than 20 per cent annually that our Logistics
business has experienced in recent years.
"This is just the beginning of what I expect to be a very exciting period
for APL Logistics," Mr. Jacobs said.
About APL Logistics
APL Logistics is a rapidly growing business. As a full-service logistics
provider, APL Logistics is global in scope and offers services that span all
aspects of a customer's logistics supply chain.
By leveraging the capabilities and expertise of several specialized
business units, APL Logistics is able to tailor business programs to meet
customers' needs. APL Logistics' focus is on improving the economic
performance of its customers' supply chains through inventory awareness,
distribution networking, decision support, process management and information
technology. To achieve this, APL Logistics brings together extensive
experience in process methodology with the latest technology to design supply
chain solutions that allow customers to focus on their own core competencies.
APL Logistics can receive merchandise today from customers in any of its
warehouses in 52 countries, consolidate it into containers destined for their
distribution centers or retail stores, and manage the movement of these
products from the beginning of their supply chain to the end, including
documentation and information management.
APL Logistics offers barcode-scanning capabilities, whether on the factory
floor or at cross-dock facilities. The Company also arranges for the timely
delivery of required documentation and provides customers with the information
they need, electronically or online, to manage inventory.
The company delivers time-definite, end-to-end, complex supply-chain
management on a global scale to customers in retail, automotive, chemical and
other industries.
APL Logistics expects to grow its business significantly in the next few
years by expanding its product menu, further globalizing its capabilities and
marketing its products to supply-chain clients around the world.
APL Logistics is a wholly owned subsidiary of Singapore-based Neptune
Orient Lines (NOL), a global company involved in transportation and logistics
businesses. Container transportation company APL Ltd is also part of the NOL
Group.
About GATX Logistics
GATX Logistics, Inc. is one of the largest warehouse-based providers of
contract logistics services. It helps businesses manage their supply chain
logistics through a variety of integrated services, 3,000 employees and a
comprehensive distribution network throughout the continental United States,
Mexico, Canada and Central and South America.
GATX Logistics operates one of the logistics industry's largest
distribution networks in the Americas: 35 markets, 93 facilities, and 21
million square feet. It has a fleet of more than 700 tractors and trailers
that log more than 20 million miles a year. In addition, it owns substantial
computer hardware and software, including AS/400s and specialized systems and
programs. This includes its proprietary logistics management software, Total
Logistics Solution (TLS).
The company's services include logistics management, contract warehousing,
manufacturing support, freight management, dedicated contract carriage,
returns management, custom packaging, electronic commerce, and technological
support.
Based in Jacksonville, FL, the company was founded in 1974, and some of
its operations, which were acquired throughout the years, date back as far as
1914.
The company serves hundreds of clients, including many Fortune 500
companies. These clients represent many industries, including consumer
electronics and information technology, service parts and components, consumer
packaged goods and consumer durable goods.
GATX Logistics was one of the first U.S.-based logistics companies with
distribution operations in Mexico, Canada and Central and South America. In
addition, it operates foreign trade zones in Indianapolis, Ind.; El Paso,
Texas; Syracuse, NY and Hebron, KY.
It is an investor/partner with NON-STOP Solutions, a company that is
pioneering the use of Efficient Consumer Response in the food and grocery
industries.
SOURCE APL Logistics
AI
