French company to buy Brentwood-based logistics giant OHL
Deal reflects rising value of logistics companies amid e-commerce boom
- In time, OHL will be rebranded as Geodis, which reportedly offered $800 million for the Brentwood company.
One of Middle Tennessee's largest employers has agreed to be purchased by France’s largest shipping and transit company, the latest in a string of mergers in the global logistics industry.
Brentwood-based third-party logistics company OHL, which employs more than 1,270 people locally, will eventually be rebranded as Geodis.
That's the name of the French company, which published reports suggested last week was nearing an $800 million deal to buy the local company also known as Ozburn-Hessey Logistics.
The final purchase price wasn't disclosed in Geodis' announcement on Monday.
Geodis said the acquisition would boost the company's reach in the United States, allowing it to benefit from OHL's expertise and presence in the North American market.
"Likewise, Geodis offers a second-to-none global footprint for North American corporations and the clients of OHL seeking to grow internationally," Geodis CEO Marie-Christine Lombard said.
In agreeing to sell OHL, private equity firm Welsh, Carson, Anderson & Stowe is looking to cash in on the rising value of logistics companies.
For logistics services providers, scale has become even more important as they seek to meet increased demand among clients worldwide for shipping. That growth in demand is related to the rise of electronic commerce and online shopping.
With more than 8,000 employees and $1.3 billion in annual revenues, OHL is one of the United States' largest third-party logistics companies. The 64-year-old company has more than 120 distribution centers in North America with more than 36 million square feet of flexible warehouse space.
OHL specializes in the apparel, healthcare, electronics, food and beverage and consumer goods sectors with integrated global supply chain management and import and export consulting among its services. Starbucks, Apple, Red Bull and General Motors are among the company's clients.
Geodis has 30,000 employees worldwide, more than 120,000 customers, a fleet of 10,000 trucks and roughly $7.5 billion of annual revenue. Europe's fourth-largest supply chain operator, which SNCF Logistics solely owns, operates in more than 67 countries. Supply chain optimization, freight forwarding, contract logistics, distribution and express and road transportation are Geodis' five business lines.
Phil Corwin, OHL's spokesman, said Geodis' team was impressed with quality and work ethic of OHL's staff. "In bringing together Geodis and OHL, our objective is to help our customers overcome their logistics challenges through the extended reach and services that we can provide together," he said. "We are very excited about the opportunities in the Nashville area that the acquisition brings for our people and our customers."
Geodis' acquisition of OHL is subject to obtaining regulatory approvals. The company expects to fund the transaction with cash and through existing new debt arrangements.
Among other logistics industry merger deals, Stamford, Conn.-based XPO Logistics Inc. acquired majority interest in France's Norbert Dentressangle SA. UPS bought Chicago-based Coyote Logistics from private equity firm Warburg Pincus, and Memphis-based FedEx Corp has a deal to buy Dutch delivery service company TNT Express.
Reach Getahn Ward at 615-726-5968 and on Twitter @getahn.
