Scan Global Logistics Strengthens Position with FLS Purchase and Eyes More Acquisitions
Fast-growing Scan Global Logistics (SGL) has continued its acquisition spree with the purchase of Portugal-based FLS and has more planned in the coming months.
SGL said that the purchase of FLS would strengthen its position in the government and defense sector and add a presence in its 49th country.
The Danish forwarding company added that Portugal was an important gateway to South America and regions in Africa and “completes its footprint on the Iberic Peninsula”.
FLS has two offices in Lisbon and Funchal as well as a presence in Porto and Madeira.
It also holds national and NATO accreditations required for the defense business and has already worked with SGL teams on various regional projects.
Thomas Lyck, executive vice president of government & defense at SGL, said: “FLS has built strong relations with the Portuguese Ministry of Defense, is highly engaged with the US Foreign Military Sales, and has developed a unique IT solution tailored to these customers’ specific demands.
“Coupled with our transport capabilities and global government and defense competence centers throughout the world, it will reinforce the comprehensive support, expertise, and value-adding solutions we provide customers within the industry.”
SGL in 2021 won a seven-year contract with the Danish Military of Defense and has carried out transports for NATO and the US military as part of the contract.
The transaction is subject to approval by the Portuguese Competition Authority, and it is the intent of the parties to finalize the acquisition shortly after the approval has been received.
SGL said that in the past half year it had acquired: Sand Road Freight in Denmark, ETS Transport & Logistics, ETS Fulfillment in Germany and Belglobe in Switzerland.
The company said that more acquisitions can be “expected in the coming months” and that it was showing “no signs of slowing down its acquisition spree”.
SGL has also recently opened new offices in Romania, Kenya, South Africa and France.
SGL has grown rapidly in recent years, increasing its presence from 17 to 49 countries since 2016.
The company is targeting local representation in 60 countries and a presence in 25 of the world’s largest economies.
In February, private equity fund CVC Capital Partners Fund VIII (CVC) purchased a majority stake in the business from AEA Investors Small Business Private Equity (AEA).
SGL said that the investment would enable it to continue to grow through acquisitions, it has purchased more than 30 companies since 2017.