Damco has signed an agreement to acquire Pacific Network Global Logistics (PacNet) with the aim of creating a freight forwarding business with a stronger global network and better local service capability in Asia Pacific and Greater China.
Damco, the global freight forwarder and logistics provider, is the logistics arm of the A.P. Moller-Maersk Group, with 10,800 employees worldwide and a turnover of USD 2.8 billion in 2011. PacNet, headquartered in Australia, has 382 employees and a turnover of USD 180 million in FY2011.
Damco has been looking to strengthen its overall presence in Australia in the segments where PacNet is active for some time. The company says that combining forces with PacNet is a logical step and an almost perfect fit.
By combining forces with PacNet, Damco believes it will significantly enhance its platform in the North Asia and Asia Pacific regions gaining market leadership positions in retail and lifestyle sectors in Australia and further strengthening its position in airfreight from China to Australia.
“I am happy to be joining forces with PacNet which is another good step forward to further build our global business. PacNet has a high reputation for service in Australia, in the apparel, footwear and retail sectors,” said Damco CEO Rolf Habben-Jansen.
“We are combining two businesses with very aligned strategies, complementary skills, customer bases and geographic strengths, and we have already seen that our cultures match very well, which is an excellent basis to further improve our ability to serve our joint existing and future customers even better,” he said.
Paul Milborrow, CEO of PacNet added: “We have seen a growing demand for a broader outreach in recent years and we feel that by joining Damco we can provide our customers with a strong global presence.
“We will now create a leading freight forwarding business in our region with a market leading position in key industries, enabling us to better cater to the demands our customers are raising.”
The PacNet senior management team will join Damco, and the existing operations will be run by largely the same people and same teams.