Global logistics: Agility signs agreement to acquire Baisui Logistics
Jeff Berman, Group News Editor -- Logistics Management, 10/7/2008
HONG KONG—In an effort to expand its domestic network in China, Agility (formerly PWC Logistics), a global provider of integrated supply chain services, recently announced it has signed an agreement to acquire Shanghai-based Baisui United Logistics.
According to an Agility statement, Baisui is a domestic logistics services provider focused on intra-city and regional long-haul transport and warehousing for the chemicals, automotive and fast-moving consumer goods sectors. Baisui has 300 employees in 15 China-based locations, and it manages eight logistics centers, has its own trucking fleet and partners with more than 75 trucking companies for regional distribution needs.
An Agility spokesman told LM this deal is part of its “global strategy to grow dramatically during the next three-to-five years,” adding that Agility has already purchased a number of heavy weight players in different sectors in the industry, including project logistics, international freight forwarding and contract logistics. Some recent acquisitions made by Agility include: Geopetrol International Limited, a freight forwarding and logistics services provider focused on the Canadian oil and gas market, in September, and Cosa Freight, a full service ocean freight forwarder with 200 employees in six China-based locations, in June.
Baisui and Cosa Freight, among other acquisitions, are viewed by Agility as “tuck in” plays to augment its existing network and range of services with niche capabilities that strengthen its offering in vertical markets.
In terms of how Agility will integrate Baisui’s employees, the spokesman said it will incorporate more than 300 staff members from Baisui into the Agility network, and they will be working across a number of offices in China, including Shanghai, Shenzhen, Tianjin, Wuhan, Nanjing and Chongqing.
“They will be working in logistics centers, trucking operations, as well as in freight forwarding,” explained the spokesman.
Agility now has 40 offices in 27 China-based locations with more than 1,500 employees.
“Baisui Logistics complements our growing service offering in China, both vertically in specialist sectors and by providing improved connectivity through the company's extensive domestic transport network,” said James Gagne, Chief Executive Officer, Greater China Area, Agility, in a statement. “We will continue to grow organically and through acquisition in order to provide our customers with an integrated logistics solution throughout China.”
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