| Thu 13 Mar 2008, 12:29 | | BAW/BAWP - Barloworld Limited - Barloworld Logisti |
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BAW BAWP
BAW
BAW/BAWP - Barloworld Limited - Barloworld Logistics announces significant
international acquisitions in US$70m transaction
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Share code: BAW)
(ISIN: ZAE000026639)
(Share code: BAWP)
(ISIN: ZAE000026647)
("Barloworld")
Barloworld Logistics announces significant international acquisitions in US$70m
transaction
MEDIA: Business and trade
Barloworld Logistics, supply chain management subsidiary of industrial
multinational Barloworld, today announced a major growth initiative by acquiring
Dubai-based Swift Group and its affiliates in the Far East, India, UAE, Africa
and Germany.
The acquisitions will catapult Barloworld Logistics into the global logistics
arena, especially with regard to multimodal transport solutions, with several
niche services and logistics activities between South East Asia, the Indian sub-
continent, Europe and Africa.
The Swift group is privately held and has grown an international network
specialising in distinctive logistics solutions and services. Now in its 19th
year of operations, Swift is a leader in global transportation and logistics,
with well-established services between South-East Asia and Western Europe and a
number of innovative freight logistics solutions specific to African markets.
Swift has over 600 employees in its 46 offices in 20 countries, spanning the
Middle East, Far East, the Indian sub-continent, and Africa.
The acquisition will include the marketing operations of one of Swift`s
business partners in Germany, which has been responsible for the
commercialisation of sea-air combined transport (a multimodal transport
solution), operating from the Far East and the Indian sub-continent via
the UAE to various destinations in Europe.
Although Swift has made recent in-roads into China, Barloworld Logistics as part
of its acquisition strategy is currently also finalising the acquisition of a
Hong Kong-based logistics company to strengthen Swift`s presence in this region
and to expand Swift`s product and service offering.
The cost of acquiring the Swift group and its affiliates will be US$70m, subject
to final adjustment based on profit and other warranties to be achieved.
Barloworld Logistics CEO Paul Stuiver, commenting on the rationale for the
acquisitions, says, "The skills, networks and clients of Swift and its
affiliates will enable Barloworld Logistics to provide multimodal solutions in
the global logistics arena. By expanding our freight management services through
their networks, we will become a significant player in a supply chain network
that stretches from Asian manufacturing to Western European and African
consumers". Stuiver sees significant growth potential as Swift has an extensive
African network which offers Barloworld Logistics the opportunity to sell
additional supply chain services into these markets.
Muhannad Al Ashram, managing director of Al Ashram Enterprises, Barloworld
Logistics` partner the region, adds that "the acquisitions will consolidate our
existing logistics activities in Dubai which is already an important global
logistics and trans-shipment hub. Most of the existing multimodal market
originating from South East Asia is trans-shipped through the UAE".
Swift Group`s Chairman and Founder Issa Baluch confirms that he will continue to
play a leading role in the Swift Group and that, "It is a milestone for Swift -
the staff, management and stakeholders - to be recognized as an organisation
with a sound strategy and potential to grow even further as an integral part of
the Barloworld group. I am extremely happy and excited for this organization and
I believe we have a bright future ahead in pursuit of our corporate goal to
serve the world from Dubai."
Swift was one of the first companies to reserve space in Dubai Logistics City
for a purpose built logistics centre (29 000 sqm) and an additional airside
facility at the new World Central Airport to provide smooth air connectivity for
shipments (25 000 sqm). At present, Swift has a total of 18,000 pallet positions
in its warehouses in the Jebel Ali Free Zone in Dubai, capable of cool, air-
conditioned and dry storage.
Services into Africa include Swift Perishable Logistics operating from the Dubai
Flower Centre, offering African farmers and traders opportunities to export
perishables around the world via Swift`s African network; and the acclaimed SAM
(Sea Air Model) - the first combined sea-air transport solution into several
destination points in Africa with scheduled services from origin points in the
Far East and India, via transit points in Dubai.
From a Barloworld group perspective, the transactions fit well with the
solutions-based growth strategy being pursued in each of its core businesses.
Comments CEO Clive Thomson, "The acquisitions set the platform for significant
long term value enhancement for the Barloworld Group, and emphasise the extent
to which our Logistics business is well-positioned to take advantage of the
opportunities presented by ongoing rapid globalisation and trade movements. From
a strong home base in Africa, we are very excited about Barloworld Logistics
spreading its wings on the global stage."
Log onto www.barloworld-logistics.com for more information
Distributed by : TerraNova Strategic PR
Contact : Christine Conradie
Tel : + 27 11 463 5713/+ 27 82
256 6997
E-mail : Christine@tnova.co.za
Written on behalf of : Barloworld Logistics
Enquiries
Sibani Mngomezulu
011 - 445 1000
Sandton
13 March 2008
Sponsor
J.P.Morgan Equities Limited
Date: 13/03/2008 12:29:46 Produced by the JSE SENS Department.
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