SGL targets top 15 spot in the air cargo market with new acquisition
Scan Global Logistics (SGL) has entered into a binding agreement to acquire New Zealand forwarder Orbis Global Logistics as it targets a top 15 spot in the air cargo market.
SGL said the deal, which is set to be completed in October, will “significantly strengthen its position in the Pacific region, targeting significant growth in the coming years”.
SGL and Orbis present a “solid match sharing an identical customer-centric business model rooted in providing entrepreneurial transport and logistics solutions to a diverse portfolio of customers”.
Orbis founders, Troy Hageman, Stuart Kingdon, and Stephen Fredricson, will continue to run the company.
Hageman said the deal would help the New Zealand company expand: “The SGL acquisition of Orbis represents the next chapter in our dynamic growth in the NZ market. SGL is the perfect fit for us on a cultural level.
“It also gives us the ability to utilize their extensive network and infrastructure to expand within the Pacific Region and beyond, to the benefit of our customers and staff alike.
“The Orbis Team and Directors look forward to our next chapter with SGL, remaining focused on providing our customers with the service and care that they are accustomed to, and with the additional capability that SGL brings.”
SGL group chief executive Allan Melgaard added: “The Pacific region remains a key market for SGL in the years to come, where we expect significant growth and see strong demand.
“While we share a similar business approach, most importantly, we see a perfect match with our company DNA and the virtues we value.”
In August, SGL global chief operating officer for sea and airfreight Mads Drejer said the company had plans to become one of the world’s top 15 airfreight forwarders over the next five years.
Drejer said SGL is currently in the top 40 air forwarders with volumes of around 100,000 tons per year.
In line with this ambition, SGL has purchased around 10 companies over the last five years.
SGL’s most recent acquisition came three months ago when it purchased Grupo Contenosa, a Spanish family-owned logistics service provider with a presence in the Mexican market.
The forwarder has also entered new markets in Poland, Czech Republic, Mexico, Peru, and Myanmar.
SGL also opened its first office in France in April, although it already had extensive business in the country through agents.
In January SGL signed a definitive agreement to acquire the air and ocean activities of US logistics firm Werner Enterprises.
Other investments this year include Chicago-based Expedited Solutions, Atlanta-based Trans ATL and Boston-based Precision Worldwide Logistics.