EXEL ACQUIRES FUJITSU LOGISTICS LTD
(London, UK – 2 June 2004) Exel, the UK based, global leader in supply chain
management, today announced that it has completed the acquisition of Fujitsu
Logistics Limited (FJL) from Fujitsu Limited, a leading provider of
customer-focused information technology and communications solutions. FJL
provides a range of logistics services to Fujitsu’s companies in Japan and in
2003 had turnover of £200m (Y40bn). The transaction is supported by a five-year
outsourcing agreement under which Exel will continue to provide domestic
logistics services to Fujitsu utilising the acquired infrastructure. The
initial consideration of £25m (Y5bn) will be settled from existing cash funds,
with up to a further £12.5m (Y2.5bn) payable after three years, dependent on
future performance. Exel will incur some modest integration costs which will be
taken as an exceptional item in 2004.
For Exel, this move represents a continuation of its strategy to build its
contract logistics business across Asia Pacific and to strengthen its position
in the important Japanese market, the second largest economy in the world. It
provides a significant platform for the expansion of Exel’s already strong
international forwarding presence into the Japanese domestic logistics market.
The combination of FJL’s facilities, skilled workforce and specialist
experience in the IT sector, together with Exel’s global network and expertise
in serving other business sectors, creates a compelling proposition. Exel and
FJL operations in Japan will be fully integrated into a single entity over the
coming months. The acquisition will more than triple the size of Exel’s current
operations in Japan.
FJL was founded in 1988 to provide logistics services to Fujitsu companies and
currently employs over 470 employees plus 1,100 contract staff. There are 57
locations throughout Japan from which FJL manages distribution and warehousing
services. The locations include a network of distribution centres with
cross-docking and storage capabilities. FJL also operates a managed road and
railfreight network with trunking and final delivery capabilities across Japan.
Added value services include packaging design, service logistics, spare parts
distribution, equipment installation and electronics recycling.
John Allan, Chief Executive, Exel commented, ‘I am extremely pleased that we
have concluded this acquisition and outsourcing contract with Fujitsu. This is
an important step towards building a significant presence in the Japanese
market, which is a key part of our strategy for growth in Asia Pacific.’
-ends-
For further information contact:
John Dawson, Director of Corporate Affairs
Tel: +44 7733 301986
