Tibbett & Britten starts strategic move into Latin America
Tibbett & Britten, the international supply chain management and logistics service provider, has established its first operational presence in South America through an acquisition in Argentina.
The United Kingdom-based group, which claims to already have a strong position in the North American logistics market, says the Argentinean deal represents an “important early step” in its strategy of starting to move into “selected” Latin American markets.
Tibbett & Britten has in fact been providing logistics consultancy services for retailers and multinational manufacturers in South America, specifically in Argentina and Chile, for more than a year. Now, it has taken that involvement a step further by acquiring Unicargo, an Argentinean organisation which provides nationwide transport and distribution of food and drink products. Based in Buenos Aires, the latter employs a fleet of 500 commercial vehicles and last year generated revenues of US$19 million.
Tibbett & Britten is not revealing the cost of the Unicargo acquisition but says it will be financed from the group’s cash reserves. Commenting on the broader implications of the deal, John Harvey, Tibbett & Britten group chairman and chief executive, says: “We intend to develop from our leading position in the North American logistics market into selected Latin American countries – and the purchase of the Unicargo group represents an important early step in implementing this strategy.” For more details, see also Corporate Announcements (February 28).
