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3PL Services
TNT Logistics To Be Sold to Private Equity Firm, Apollo Management
TNT N.V., the Amsterdam-based based parent of TNT Logistics. has agreed to sell the 3PL division to affiliates of Apollo Management, L.P., a private equity firm with offices in New York, London and Los Angeles. The sale of the logistics division will allow TNT to focus on its European-centric postal and small package businesses. The total transaction value is € 1,480 million on a cash and debt free basis, of which € 15 million will be received in the form of a 5 percent equity stake in the new company. TNT intends to return most of the net proceeds, which are estimated at between € 1.2 billion and € 1.3 billion, to its shareholders by way of a share repurchase program with a value of up to € 1 billion. The share repurchase program is expected to commence as soon as possible after completion. The intended sale is subject to the approval of TNT's shareholders and is conditional upon the customary approval of EU and other regulatory bodies. Completion of the transaction is expected before the year end.
After completion of the transaction, Dave Kulik will resign from the TNT Board of Management to become CEO of the new company. Kulik comments: “This transaction gives us the opportunity to further evolve into a leading global service provider in logistics, meeting the specific needs of our customers. Leveraging on our expertise, infrastructure, customer base and Apollo's commitment we are poised for a competitive and profitable future.”
TNT's logistics division is the number two logistics company in the world, employing approximately 36,000 people, operating in 28 countries and managing 7.3 million square meters of warehouse space. The logistics activities that are the subject of this announcement have been reported within discontinued operations in the TNT group's consolidated statement of income since 6 December 2005.
Gareth Turner, a London based Partner at Apollo Management said: “The Logistics division is a world class business with 36,000 dedicated professionals, a strong management team and an impressive customer list. We see it as a clear platform for growth and we are happy that the management team has committed themselves to work with us on achieving that growth. As long term investor, Apollo Management looks forward to helping the Logistics division to further build its top position in the contract logistics market worldwide.”
Since its inception in 1990, Apollo Management has invested over $16 billion in companies representing a wide variety of industries, both in the US and internationally. Its current and past investments in the distribution, transportation and logistics industries include Pacer International and Quality Distribution.
http://group.tnt.com/
Menlo Worldwide Expands in the Netherlands
Menlo Worldwide is expanding its European multi-client logistics center in Eersel, Holland by100,000 square feet for a total of 350,000 square feet. The expansion, the third for the facility since it opened in 1997, added 30 percent more space for inventory management, fulfillment operations, warehouse, distribution and supply chain management services. It addresses Menlo's growing business volumes, and the strong demand for outsourced logistics services in the Brabant region of the Netherlands, which is centrally located in a strategic triangle of major European air and ocean gateways. It serves eight major global customers in industries as diverse as apparel and footwear, sporting goods, medical equipment, contract manufacturing for consumer electronics, computer networking, GPS navigation and surveying systems and high-performance automotive products.
Primary services provided at the Eersel center include:
1. Bonded warehousing, inventory control and supply chain flow management.
2. Receiving, storage, pick and pack, shipping, customer service.
3. Product staging, fulfillment and distribution management.
4. Just-in-time or emergency response delivery.
5. Transportation network design and operations management including freight invoicing, audit and payment.
6. Value-added services such as assembly, kitting, labeling, product customization and returns management.
Eersel is one of five major logistics operating centers Menlo has in Europe. The others are Amsterdam and Rotterdam, the Netherlands; Hahn, Germany; and Budapest, Hungary. All Menlo's European operations are able to service customers across its key vertical markets, which are automotive, high-tech, consumer goods and industrial products.
http://www.menloworldwide.com/
Con-way Freight and APL Logistics and Launch OceanGuaranteed Service
APL Logistics and Con-way Freight have launched OceanGuaranteed, a new service providing secure, rapid delivery of less-than-container load (LCL) shipments from China to the U.S. to meet increasing customer demand for a premium service that is more cost-effective than air freight. The program will provide “port-to-door” guaranteed service from Hong Kong, Shanghai and Shenzhen in China, to all continental U.S. destinations served by Con-way Freight, over Los Angeles as the U.S. port-of-call for customs clearance and deconsolidation. Shipments that fail to meet the delivery-day commitment receive a 20 percent discount, subject to the terms of the service guarantee.
For C-TPAT certified customers, shipments tendered under OceanGuaranteed will be segregated in dedicated C-TPAT-only containers - minimizing the chance of potential delay from non C-TPAT shippers, and allowing these cargoes to be “green laned” by U.S. Customs and Border Protection.
Moreover, APL Logistics and Con-way Freight have established a simplified pricing structure for OceanGuaranteed. Shipment pricing will be calculated on a per kilo rate, based on delivery from the origin ports in China, to 11 delivery zones in the U.S. OceanGuaranteed shipments also will receive expedited handling, including late-gate privileges at origin, “last on, first off” loading/unloading, and priority shipboard stowage for rapid discharge at the destination port. The companies are accepting bookings for the new service effective September 5, 2006.
The two companies decided to establish the joint service following the results of a market study commissioned with MergeGlobal, an industry research and consulting service. The study examined current and emerging conditions for transportation service and capacity in the trans-Pacific, as well as shipping patterns, outsourcing practices, business economics and customer supply chain issues. The study revealed a clear opportunity for a premium service such as OceanGuaranteed (SM) that offered faster transit coupled with higher consistency and reliability.
https://freight.con-way.com/
Industrial Transport and Exel Form Joint Venture
Industrial Transport, a U.S. regional provider of intra- and inter-plant freight movement services, and Exel, a North American contract logistics provider and wholly owned entity of Deutsche Post World Net, have combined capabilities in Innogistics LLC.
Both 3PLs possess deep expertise in near- and in-plant logistics. Industrial Transport's ability to deliver time-sensitive transportation services in the manufacturing environment are complemented by Exel's global resources throughout DPWN's DHL Logistics Division and its expertise in delivering value added manufacturing support services such as sub-assembly, sequencing and packaging. The companies share a commitment to operational excellence, project management processes, and continuous improvement.
The joint venture will operate as a minority business enterprise certified by the National Minority Supplier Development Council. The certification confirms Innogistics' status as an enterprise that is owned, operated and controlled by Industrial Transport, a minority business enterprise.
The arrangement enables both companies to leverage their strengths to capitalize on growth opportunities with existing and potential customers. Innogistics, which offers secondary packaging, sequencing and sub-assembly services, serves organizations in the consumer products and automotive sectors and plans to expand its offering to other industry sectors.
Penske Logistics Named As Lead Logistics Provider by Whirlpool
Whirlpool has selected Penske Logistics as its lead logistics provider (LLP), responsible for managing and evaluating regional supply chain operations to ensure maximum efficiency, optimal visibility and increased cost savings. In addition, Penske Logistics has expanded its existing contract with Whirlpool for operational inbound and outbound supply chain needs.
As Whirlpool's LLP, Penske Logistics will serve in a consultative role, overseeing and integrating all third party logistics providers. The company will be responsible for managing supply chain functions including, routing, load tendering, freight payment and engineering, as well as lending support during the procurement process, ensuring provider capabilities, customer service, and supply chain metrics. Expanding upon an existing contract for inbound and outbound services, the company will assume additional management and operational control over Whirlpool's private fleet and three regional distribution centers in Kent, Wash., Flower Mound, Texas, and Gouldsboro, Pa.
http://www.gopenske.com/
Ryder Selected to Provide First All-Plastic Pallet Pool With Built-in RFID Tracking
Intelligent Global Pooling Systems (iGPS) operator of the world's first RFID-tagged all-plastic pallet pool, today announced that it has selected Ryder System, Inc., a global leader in supply chain, warehousing and transportation management solutions, as its supply chain logistics partner.
Under the contract, Ryder will provide distribution and RFID tracking for as many as 60,000,000 pallets annually to iGPS customers throughout North America. Ryder will develop and manage a Web-enabled transportation and procurement solution based on iGPS' business parameters to optimize the inbound and outbound network of transportation carriers supporting the Company's North American operations. Additionally, Ryder will provide on-site management, procurement of transportation, routing instructions, compliance management and freight bill audit and payment.
iGPS is spearheading a paradigm shift in the pallet-rental business from wood and other materials to uniform plastic pallets with RFID tracking capabilities. Powerful advantages exist for virtually all industries, such as beverage, consumer electronics, grocery/consumer packaged goods, home improvement/do-it-yourself, pharmaceutical, produce/meat and raw ingredients. The advantages of iGPS pallets include their greater durability; consistent size, shape and quality; lighter weight; superior hygiene and traceability.
http://phx.corporate-ir.net/
ProLogis Leases Space in Memphis
ProLogis, a global provider of distribution facilities and services, has leased 600,000 square feet of industrial space to two customers at a new park it operates in Memphis, TN. Kyocera Mita America, a leading document imaging company, has leased 300,000 square feet at ProLogis Park Stateline, an 80-acre park located about two miles southeast of Memphis International Airport. The facility will become the hub of Kyocera's new national product distribution network, and will eventually service approximately 70 percent of the United States.
Franklin Sports, a leader in sports equipment for athletes of all ages, has leased another 300,000 square feet at the same location to support the continued growth of its business and will use the space for its regional distribution operations.
ProLogis Park Stateline can accommodate up to 1.53 million square feet at full build-out. Located in southeastern Memphis, it offers direct access to the airport, multiple interstate highways and nearby rail infrastructure. Phase one of development at the park, which was completed in 2005, is now fully leased.
ProLogis entered the Memphis market, which includes northern Mississippi, in 1995. The company's current platform totals more than 10 million square feet of industrial space.
http://www.prologis.com/
TNT Logistics / Rolls-Royce Partnership is a Winner
Rolls-Royce and TNT Logistics UK have won the Partnerships category in the prestigious Motor Transport 2006 industry awards. According to the judges, the partnership has transformed the way in which Rolls-Royce transports goods … a centrally managed network has resulted in major cost savings. TNT's implementation plan is reviewed every two weeks and its operations have grown steadily,” they said.
In the six years the two companies have been working together, the scope of the partnership has extended from a UK-based traditional outsourcing contract to a global partnership. TNT Logistics undertakes a wide range of activities including an inbound parts collection service, a call centre, delivery of Rolls-Royce aero engine worldwide and warehousing of spares for the Rolls-Royce Naval Marine business.
http://www.tntlogistics.com/
OH Logistics Extends Distribution Center Network in Virginia
Ozburn-Hessey has added a half-a-million-square-foot facility ted in Winchester, VA, to its over 21 million square foot network. OH Logistics has also recently added new facilities in Romeoville, IL; Plainfield, IN; St. Louis, MO; Chambersburg, PA; and Southern CA. Total expansion for the company year-to-date is almost two million square feet.
http://www.ohlogistics.com/
Brightpoint Extends its Exclusive Agreement with MetroPCS in the United States
Brightpoint, a 3pl for the wireless industry, L.P. has extended its agreement with MetroPCS Wireless provide distribution and logistic services in the United States through its Brightpoint North America subsidiary. Brightpoint will continue to provide a variety of integrated logistic services for MetroPCS, including inventory management, customer service, order management and distribution to MetroPCS agents, dealers and retail stores.
http://phx.corporate-ir.net/
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