Salvesen links networks; further bid speculation
Christian Salvesen, the UK based logistics company, has announced that it has linked its UK and French networks enabling it to provide a range of time definite services to clients across the two markets. The integration of the two networks will combine its 13 UK distribution centres with 18 of its French subsidiary, Darfeuille, using its IT system, SHARPnet.
The performance of its Darfeuille acquisition has been one of the major success stories for Salvesen in an otherwise difficult year. The strategy of the company has been to export its UK shared user network model to European markets. This has met with limited success, as the sale of its German subsidiary earlier in the year has shown. However Darfeuille already operated an industrial network in France and the transition to the UK template has been relatively seamless. Even so, its operating margins dropped from 4.3% to 3.8%, reflecting the weakness of the French market as a whole.
The well documented problems that the company has faced resulted earlier in the year in an unsolicited approach by an unnamed financial bidder seeking to acquire the company. Although talks with the management broke down at an early stage it has been rumoured that following the release of Salvesen’s 2003 results the same bidder could be about to formulate another offer. This has led to a substantial rise in the company’s share price.
