Exel acquires US logistics company

Exel is to acquire the business and assets of United States Consolidation Limited (USCL), a supplier of value added freight consolidation services to US retail customers. It is expected that the acquisition will be earnings enhancing, before goodwill amortization, in 2002. Audited net assets at December 31, 2000 were US$5.3 million. (1/8/2002)
USCL will provide Exel with expertise in ocean freight consolidation, which reduces space utilization and transportation costs by optimally arranging the goods being transported. In addition, USCL has a strong base in the important manufacturing areas in Asia, particularly China.
Consolidation is a key add-on service to ocean transportation, particularly for retail and consumer businesses, where consolidators frequently act as an important interface with customers’ suppliers. US retail organizations have long used consolidators to facilitate their purchase orders in Asia and to minimize the problems associated with supply chain management.
Exel has identified consolidation skills as key to developing stronger retail and consumer sector services to meet increased demands from the extended supply chains as customers increasingly look to source products outside traditional supply bases. USCL brings consolidation expertise together with a strong presence in key markets in Asia. Operations in the US further strengthen the service with west coast based de-consolidation services for the US market.
Bill Aldridge, president and CEO of USCL, said: “USCL’s focused services should significantly strengthen Exel’s fast growing sea freight business. Consolidation will be a key part of the services offered to major retail and consumer companies as they look for Exel to deliver the benefits of their extended supply chains. In turn, our customers will be the beneficiaries of this extended global reach and enhanced capabilities.”
John Allan, chief executive of Exel, said: “USCL provides a significant opportunity for Exel to strengthen its presence in the sea freight market. USCL’s range of consolidation services, high quality people and strong customer relationships will enhance Exel’s position with major retail and consumer companies and will support the group’s objective of building a strong global sea freight business.”