Schenker to buy EGL automotive JV
Schenker to buy EGL automotive JV – Thursday, July 17, 2003
A subsidiary of global forwarding and logistics company, Eagle Global Logistics (EGL), has been named as the likely target for acquisition by German railways company, Deutsche Bahn on behalf of its logistics subsidiary Schenker. The Canadian company, TDS Automotive, is a joint venture in which EGL owns 40%. Although there has been no official announcement it is believed that a deal put at $160m (€139m) is close to fruition. TDS had a turnover of $196.9m (€171.3m) in 2002.
TDS is a specialist supplier of high value add logistics activities for the automotive industry. It provides a range of inbound logistics services, including sequencing, line side deliveries and sub-assembly in addition to outbound consolidation, de-consolidation and parts distribution. As well as having a substantial presence in the Canadian market, it also has a $33m (€28.7m) operation in the USA, and subsidiaries in Europe (Belgium, Germany), India, South America and Asia Pacific Rim. Its client list includes BMW, DaimlerChrysler, Ford, General Motors and Volkswagen Group.
The acquisition would substantially increase Schenker’s presence in the global automotive sector, as well as increasing its operations in North America. This is the second major acquisition of the year for the company in this geography, the previous focusing on the consumer goods logistics market. The backing which Schenker’s new owners Deutsche Bahn has provided has enabled the company to expand its sub-scale logistics activities. If the company follows through with its expansion strategy more acquisitions can be expected, especially in North America.
