Logistics news: Agility acquires Geopetrol to expand Canadian presense in oil and gas sectors

Jeff Berman, Group News Editor -- Logistics Management, 9/3/2008

TORONTO—In an effort to expand its presence in Canada, Agility (formerly PWC Logistics), a global provider of integrated supply chain services, said this week it has acquired Geopetrol International Limited, a freight forwarding and logistics services provider focused on the Canadian oil and gas market.

Financial terms of the transaction were not disclosed.

According to an Agility statement, Geopetrol’s services include all aspects of freight forwarding, including ground, air, ocean freight, customs clearance, and warehousing, as well as project logistics, including heavy lift and oversize cargo shipments and other specialized project forwarding services for the Canadian gas and oil industry. Geopetrol has 21 employees in offices in Edmonton and Calgary, Alberta and St. John’s, Newfoundland. Geopetrol is an asset-based company.

“Agility has been in ‘growth mode’ for a while, and we have been specifically looking to expand our oil and gas expertise, which made [acquiring] Geopetrol perfect,” said Brian King, Agility Marketing Communication Manager, America, in an interview. “We already have a strong presence in Canada, too [with 10 branches and 220 employees].”

With this acquisition, Agility will be able to leverage the services Geopetrol has been providing for its customers in the oil and gas sectors across more industries to help their current customers, explained King. And he added Agility’s customers will be able to leverage Geopetrol’s oil and gas industry expertise as well.

But even with these projected synergies King cautioned that Agility’s customers are not likely to see any immediate significant changes, but he noted that Agility will have increased services in Canada and will be able to offer customers more within this specific industry segment.

"It is a pleasure for us to be a part of the huge Agility network," said Ron Hedlund, President, Geopetrol, in a statement. "Their geographic reach and broad portfolio of services will be of great advantage to Geopetrol, while our specialized services and the niche market will indeed be an additional asset to Agility worldwide."