Geodis tipped for acquisition target in report

Global logistics companies Geodis is being tipped as an acquisition target in a report published by industry analysts Transport Intelligence. Global Contract Logistics 2007 says fragmentation in the industry hints at the likelihood of further mergers and acquisitions in the months to come, like the forthcoming takeover of Christian Salvesen by Norbert Dentressangle.

The report finds that the top 10 logistics companies account for just over 25% of the global market, meaning that more high-profile buy-outs are a possibility. Analyst John Manners-Bell says: “Geodis is a possibility, although its ownership structure [it is part owned by SNCF] makes this tricky.”

The report says DHL and Kuehne + Nagel(K+N) are the fastest growing companies acquisitively and Ryder is growing very fast on an organic basis (20%). Manners-Bell adds: “Of course, Norbert Dentressangle will be one of the fastest growing in 2007 following its acquisition of Salvesen.”

Norbert Dentressangle and DSV were amongst the best performing, judging by their operating profit margins of between 1.6% and 6%. TDG, Wincanton, DHL Exel Supply Chain, Ceva, Salvesen and K+N all came in at the lower end of this range, 1.6% to 3%, due to their focus on the highly competitive and price dominated European consumer and retail sectors.