Exel to acquire Power Logistics Operations
EXEL TO ACQUIRE POWER LOGISTICS OPERATIONS
Acquisition of Power Logistics and Power UK will strengthen
Exel's consumer and retail sector presence and capabilities
(London, UK, 3 September 2002) – Exel, the global leader in supply chain
management, announced today it is acquiring several major operations of Power
Packaging Inc., a privately held provider of logistics and packaging services.
The acquisition is subject to regulatory approval.
Exel will be acquiring the Power logistics operations in the US and UK which
provide supply chain management and packaging services to manufacturers and
retailers of consumer products. In addition Exel has entered into an agreement
to purchase the contract manufacturing activities of Power Packaging pending the
achievement of certain financial objectives during the next two years. Initially
Exel will be acquiring assets of #4.6m (as at the 31 December 2001). It is
expected that each element of the transaction will be earnings enhancing.
The acquisition enhances Exel's end-to-end logistics capabilities and provides a
stronger and deeper footprint within the consumer and retail markets in both the
US and Europe.
"Exel's strengthened capabilities will help customers focus on developing and
managing their brands while relying on us to offer an end-to-end business
solution for new product introductions or ongoing distribution operations," said
Bruce Edwards, Chief Executive Officer of Exel's consumer, retail and healthcare
operations in the Americas. "Bundling logistics and packaging could help some
companies reduce transportation spending by 20 to 40 percent, decrease
administrative costs by 60 percent, and cut packaging project order lead times
by 75 percent."
John Allan, Chief Executive of Exel plc, said, "Exel's supply chain expertise
and global scope combined with Power's expertise in designing and implementing
complex distribution centre solutions create a unique logistics business. Exel
will be in a stronger position to deliver benefits to its customers through
providing solutions that can help them rationalise their supply chains,
eliminate costs and improve service levels, creating real value in the supply
chain."
For more information, please contact:
John Allan +44 1344 744363
Chief Executive
Exel plc
Martin Leeburn / Brian Hudspith / Amy Holmes +44 20 7379 5151
The Maitland Consultancy
Notes to Editors – About Exel plc
Exel is the global leader in supply chain management, providing customer focused
solutions to a wide range of manufacturing and retail industries. Exel's
comprehensive range of innovative logistics solutions encompasses the complete
supply chain from design and consulting through freight forwarding, warehousing
and distribution services to integrated information management and e-commerce
support.
Exel, a UK listed, FTSE 100 company, has turnover of over #4.5 billion (US$6.5
billion) and employs more than 60,000 people in 1,300 locations in over 120
countries worldwide. Exel's customers include over two thirds of the world's
largest, quoted non-financial companies. More information is available at
www.exel.com.
About The Power Group
Headquartered in St. Charles, Ill., The Power Group is an outsource provider of
manufacturing and logistics services with 34 facilities in four countries. The
company specializes in operating dedicated and multi-use food manufacturing,
packaging and logistics facilities and has been providing its outsourcing and
integrated supply chain solutions for Fortune 100 customers for more than 30
years. More information about The Power Group can be found at
www.powergroup.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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