AutoLogic expands into Europe
UK-based automotive logistics firm AutoLogic cemented its position as Europe’s largest independent automotive logistics provider last week when it splashed out $20.5m (€23m) to acquire the entire stock ofAutocar and Ansa Logistics.
Commercial director Maurice Rourke said the move was part of a global strategy:
“We’ve been trying to build a series of Europe-wide relationships and have now achieved that. Our next step is to replicate this on a global basis.”
Autocar and Ansa had previously been owned jointly byAutoLogic and US logistics conglomerate Allied Holdings. The deal was approved byAutoLogic shareholders at an extraordinary general meeting last week.
Autologic gained sole ownership ofAnsa
and Autocar, plus Allied’s 32% stake in
Vehicle Logistics Corporation (VLC), a Benelux joint venture set up with AutoLogic and Austria based Hodlmayr International. AutoLogic now holds a 64% stake in VLC and expects to handle around 5m cars this year.
Rourke said: “This push to become a global business is a response to the manufacturers. They are also rapidly consolidating and nowadays want to talk and deal with less and less people.” But he added that the deal would not have occurred had cash-strapped Allied not been in such a desperate position.
Allied Holdings president and CEO Hugh Sawyer admitted that the move had been forced by financial woes. “The divestiture of our UK joint venture supports our initiative to reduce our indebtedness,” he said.
But one investment banker close to AutoLogic said that if the company wanted to become truly global it would have to make at least one more major acquisition. “The country where it remains weak is Germany,” he said.
“Volkswagen’s transport remains inhouse, although a new CEO of the group is
to be appointed, so that might be reviewed and provide a new opportunity.”
Richard Lawson, president of rival firm Richard Lawson AutoLogistics, said: “We are also looking to increase our European presence — whether by acquisition, merger or organic growth.”
Some shippers expressed concern at the rapid consolidation of logistics providers. One transport buyer at a major manufacturer told IFW: “A lot of people regard this as a negative thing. Basically, we want more competition so we can lever better prices out of suppliers.
“The reasons for the deal are obvious, and AutoLogic should be able to get some decent cost savings and a better utilisation of equipment. For example, it will be able to backload its own traffic.
“But whether any of these benefits will be passed to their customers remains to be seen.”
Rourke added that AutoLogic was in talks with manufacturers to find ways of achieving these types of savings.
