Fast-growing Scan Global Logistics said it is planning to make more acquisitions with a focus on growing in key markets, reports HLPFI’s sister publication Air Cargo News.
Following publication of its full-year results, SGL said that its acquisition strategy had so far been based on accelerating its geographical presence. This will continue in some significant markets, but the forwarder said that it will pursue a targeted merger and acquisition (M&A) strategy, ensuring all key countries and markets required to service global customers are covered in terms of an SGL presence.
“The industry remains fragmented, and SGL still sees significant room for consolidation, with SGL increasingly positioned as a company that is the acquirer of choice,” it said.
“M&A will also be used to build instant capabilities across the organisation within high-touch non-cyclical verticals such as pharma and healthcare, automotive, aid and relief, and government and defence. From a size perspective, there is expected to be larger M&As, but fewer M&As going forward considering SGL is entering into the last cycle of geographical expansion. M&A investments will increasingly be targeted in countries with robust underlying growth,” the company explained.
The company is also targeting “extreme” organic growth, with double-digit improvements across all regions, transport modes and industries.
To help achieve organic growth, the company said it had made significant investments into sales supporting functions such as tender management, procurement, supply chain development and similar.
Read the full article on here.https://www.aircargonews.net/freight-forwarder/scan-global-logistics-plans-for-further-acquisitions/
