| Mon 28 Jan 2002, 0:00 | | Barloworld Logistics Acquires Execulink |
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Barloworld Limited
Share code : BAW
ISIN code : ZAE000026639
Press Release
The newly-formed Barloworld Logistics Company is on the move with its first
acquisition less than four months after its formation.
It has bought 51 percent of Gauteng-based inventory management company,
Execulink, giving it a strategic presence in another aspect of the rapidly
burgeoning logistics industry, as well as a foothold in Europe. Execulink is
to change its name to Barloworld Optimus with immediate effect.
Execulink, which employs some 80 people, is a recognized leader in the field
of inventory optimisation. The company makes use of inventory risk
methodology and software to asses all aspects of a client's inventory and
logistics requirements. Its unique approach has a proven track record of
reducing inventories and costs, typically by between 20 and 30 percent.
Clients include Iscor, Billiton, Sasol Syn Fuels, SAPPI, BMW, Delta Motor
Corporation, Volkswagen South Africa, Toyota and Shatterprufe.
Last year the company expanded its operations in the UK and has already
secured contracts in other European countries.
In announcing the acquisition today, Barloworld Logistics chief executive
officer, Paul Stuiver, said that although the acquisition was small in money
terms, the strategic importance of the deal should not be underestimated.
"World class logistics is far more than operating warehouses and fleets of
trucks. It is about adding value rather than cost cutting. Barloworld
Optimus will expand our offering of supply chain management solutions and
services to our customers. We intend expanding the company rapidly, both
here and in Europe, and R5-million has already been earmarked to kick-start
this objective".
Barloworld has the option of acquiring the remaining 49 percent Execulink
shares in three years time. The founders and directors of Execulink, Derek
Roux, Tony Sinton, Grey Crosby, and Richard Forrest will remain with the
company.
Barloworld Logistics was established as a new force in the southern Africa
logistics industry in October last year through the acquisition of PPC
Logistics from Barloworld's listed subsidiary PPC, for a consideration of
around R165-million. This was merged with Barloworld's motor logistics
business to form a separate company with a projected turnover of some R300-
million.
Barloworld CEO Tony Phillips said at the time that the new company created a
platform for Barloworld to develop a significant logistics business.
For further information, please contact:
Paul Stuiver at (011) 445 1626; or pstuiver@ppc.co.za
Mark Drewell, Head Corporate Communication at Barloworld: (011) 445 1204, or
mdrewell@barloworld.com
VISIT THE BARLOWORLD WEBSITE: www. Barloworld.com
