PWC to purchase American-based logistics company
Kuwaiti-based PWC Logistics has signed a deal to purchase GeoLogistics, a non-asset based logistics company.
Questor Partners Fund II, a private equity fund, has signed an agreement to sell GeoLogistics Corporation to PWC Logistics, the Kuwaiti-based logistics company.
Under the terms of the agreement, PWC Logistics will purchase the non-asset based logistics company from its principal shareholders for approximately US $454 million on a debt-free basis. Also under the deal GeoLogistics senior management team will remain in place under PWC Logistics’ ownership.
Based in Santa Ana, California, the company has more than 5700 employees specialising in freight management and customised logistics solutions with revenues of US $1.6 billion.
“We are very pleased with PWC Logistics offer and the strategic direction it will offer GeoLogistics,” said Rob Denious, managing director, Questor Management.
“GeoLogistics is in a strong financial position. We have explored several options including an initial public offering, but PWC Logistics world-class contract logistics capabilities and its access to Middle Eastern markets made this a perfect fit,” he added.
Over the last three years under Questor’s ownership, GeoLogisitcs has implemented a broad based operational turnaround that refocused its business on core international freight forwarding operations, whilst improving productivity and reducing costs by lowering overhead expenses.
“We are very pleased to have signed this acquisition agreement as GeoLogistics is a recognised leader in global freight forwarding with a significant presence in key Asian, European and American markets,” said Tarek Sultan, chairman, PWC Logistics.
“Their global presence and experienced management team will strengthen our existing capabilities, whilst greatly expanding both the scope and range of our investment opportunities and service offerings, including our ability to deliver integrated and specialised logistics solutions globally,” added Sultan.