TPG moves into global forwarding with Wilson Logistics takeover

TPG moves into global forwarding with Wilson Logistics takeover    Dutch postal, express and logistics group TPG has returned to the acquisition trail with the purchase of Swedish-based international freight forwarder Wilson for about SEK2.35 billion ($310 million).
   The takeover of one of the remaining large European independent forwarders marks TPG’s entry in the competitive international freight forwarding field, already occupied by fellow European postal group Deutsche Post.
   TPG, the parent company of TNT, will acquire Wilson, which has freight forwarding operation in 28 countries, from investment company Nordic Capital. It will finance the purchase from its cash reserves. Wilson has offices in Europe, the United States, Canada, South America, Asia and Oceania.
   “With revenues of approximately 714 million euros ($863 million) in 2003 and more than 2,000 employees, the acquisition of Wilson will add to TNT's existing freight forwarding capabilities located within the express and logistics divisions,” TPG said today. The Dutch group described the takeover as “TNT's first major step into global freight forwarding.”
   With this acquisition, TNT aims to gain industry specific know-how, access to proprietary IT systems in freight forwarding, as well as access to a broad global client base.
   TPG also wants to position itself as a one-stop-shop for customers requiring different types of logistics services. “By acquiring Wilson's freight forwarding capabilities, TNT will be able to offer its existing contract logistics clients the full array of supply chain management services, now including air freight, sea freight and combined sea/air freight,” the group said.
   Wilson will form the platform for freight forwarding within TNT Logistics. The Swedish forwarder’s senior management will work within the enlarged TNT organization.
   TPG said the takeover will lead to higher revenues — through cross-selling and new business — and operational synergies, mainly through combined purchasing power in air transportation.
   The acquisition is subject to the approval by the relevant competition authorities. TPG said the transaction is expected to be completed in the third quarter.
   Wilson was founded in 1843 and was part of the Scandinavia shipping-to-logistics group BTL in the 1980s and 1990s. In 1999, Wilson was purchased by the venture capital group Nordic Capital, together with its management.
   In 2000, TPG bought the Jacksonville-based logistics company CTI Logistx from CSX Corp. for $650 million.
   TPG employs more than 163,000 people in 64 countries. For 2003 the company reported sales of 11.9 billion euros ($14.4 billion). TPG is publicly listed on the stock exchanges of Amsterdam, New York, London and Frankfurt.
   In early trading this morning, the TPG stock on the Amsterdam stock exchange was up 0.85 percent, to 18.9 euros.