Global logistics/M&A: Express-1 acquires LRG International
Jeff Berman, Group News Editor -- Logistics Management, 10/9/2009
SAINT JOSEPH, Mich.—Non-asset based transportation and logistics services provider Express-1 Expedited Solutions (XPO) said today it has completed its acquisition of LRG International Inc., a non-asset based international freight forwarder focusing in ocean and air freight services.
Financial terms of the deal were not disclosed. XPO officials said that this deal will “expand the international scope of its business mix…[with] LRG rolled into its Concert Group Logistics (CGL) operations,” an XPO unit in Downers Grove, Illinois.
XPO provides shippers with various services, including same-day, time–sensitive transportation as well as domestic and international freight forwarding. XPO CEO Mike Welch told LM that XPO was interested in LRG because of their experienced management team.
“The management team of Henrik Jorgensen [LRG president] and Carsten Dahl will not only continue the growth of LRG but add a superior international service to current XPO customers,” said Welch. He added that Jorgensen and Dahl will report to CGL President Gerry Post.
And with some facets of CGL’s operations lacking what Welch described as international expertise, CGL will be able to work with LRG to increase business and offer a complete freight forwarding service—both domestic and international—to its existing customer base.
“This acquisition will continue to fuel the international growth at CGL,” said Welch, “currently CGL derives 30% of its revenue from international freight.”
XPO officials also noted that the addition of LRG to CGL’s network will assist CGL in developing a logistics platform that allows for expansion into Europe, Asia and other major geographic regions throughout the world. And together CGL and LRG will combine their expertise to penetrate new markets and offer faster, safer and reliable logistics services to new and existing customers, they added.
“Becoming part of a recognized industry leader like XPO is a special opportunity for LRG, its customers and business partners worldwide," said Henrik Jorgensen, president of LRG, in a statement. "Our knowledge and experience in handling and shipping both imports and exports will be a strong asset to XPO's global logistics and transportation portfolio. We are extremely excited to partner with such a dynamic organization that places a high priority on employee and customer satisfaction.”
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