TNT buys global forwarder, Wilson
TPG, parent company of TNT Express and Logistics, has announced that it has acquired major Scandinavian forwarding company, Wilson Logistics Group. The company will pay in the region of SEK 2.35 billion (EUR 257 million) and the deal will be financed from cash reserves.
Wilson has a strong global freight forwarding network in 28 countries. With revenues of approximately €714 million in 2003 and more than 2000 employees, the acquisition of Wilson will provide TNT with forwarding capabilities which it previously lacked.
It has been known for some time that TNT was looking to buy a forwarding company in order to provide clients with a comprehensive portfolio of logistics services. By doing so the company is following in the footsteps of DPWN which acquired Danzas, AEI and ASG as well as UPS which purchased Fritz in 2001. TNT is active in several vertical sectors which increasingly require global forwarding capabilities such as automotive and high tech.
With only a few independent global forwarding companies left after many years of consolidation in the industry, Wilson was perhaps an obvious choice of partner, especially given its own status. For some time management at Wilson had talked about listing the company and it was assumed that they were waiting for the stock markets to strengthen. The purchase by TNT will offer the owner of the company, Nordic Capital, a more straight forward exit route.
This might not be the end of acquisitions for TNT as it may seek to strengthen its position further in the freight forwarding market. Wilson is strongest in Northern Europe where about 40% of its revenues are generated. However TNT could well feel the need to increase its presence in the market where scale is important. The CEO of TPG himself has said that the acquisition is only a ‘first major step’ in extending capabilities into the global freight forwarding industry.
