Scan Global Logistics outlines benefits of new majority owners
06 / 02 / 2023
Source: Scan Global Logistics
Scan Global Logistics is hoping that its new majority owners will help the company achieve its ambitious growth plans as it strives to reach $5bn in annual revenues.
Earlier today, the fast-growing freight forwarding company announced that private equity fund CVC Capital Partners Fund VIII (CVC) had purchased a majority stake in the business from AEA Investors Small Business Private Equity (AEA).
AEA will continue as minority shareholders, and the SGL Management team will co-invest alongside CVC and AEA.
SGL chief operating officer and chief commercial officer Mads Drejer told Air Cargo News that the company planned to continue making acquisitions – it has made 30 since 2017 – and CVC was an expert in this area.
“CVC is one of the leading private equity firms globally and comes with a proven track record accordingly,” said Drejer.
“Specifically we are looking forward to their expertise within M&A, but our talks during recent months have also shown that they hold a deep knowledge within industries that are very important for us.
“We have naturally had in-depth talks with CVC on our future plans and through these talks we have become convinced that we see the world in the same way both culturally and commercially.”
Drejer added that CVC is a global player and with SGL’s expansion expected to continue at a global level; “this matches very well”.
Companies acquired by SGL last year include bison Services, B.C. Dispatch, D&W, Trust Forwarding, SAS Cargo Sweden, SAS Cargo Norway, AFL Logistics – American Freight Line Southeast, Sea-Air Logistics, Gelders Forwarding and Advection Logistics, including one minority investment
“Organic growth remains very critical for us in addition to M&A and this requires continued investments both in terms of organisational capability and as well in IT and new products,” he added.
Drejer said that SGL’s double-digit organic and profitable growth had proved to be attractive for CVC.
“On top [of this, we have] a diversified business model that we believe is rather unique in the current market,” he added.
“The industry overall remains fragmented and there is a sweet spot in the market for players that have sufficient scale, but at the same time are agile and truly customer-centric.
“We focus relentlessly on creating value for our customers and not merely optimizing our own setup. This is paying dividend and driving our growth which CVC acknowledge and see even further potential in.
“We surely still have areas where we can improve and will remain humble and hands on which is what will make the difference.”
Currently, SGL’s annual revenues stand at more than $3bn after achieving annual growth of 33% each year since 2017.
The company’s key verticals include aid & relief, fashion & retail, automotive, technology, general manufacturing, food ingredients & additives, and pharma & healthcare.
The transaction is expected to close in the second quarter of 2023 and is subject to regulatory approval and certain financing conditions.
CVC takes majority stake in fast-growing Scan Global Logistics