Scan Global seals deal for Blu Logistics Brasil

Scan Global Logistics (SGL) has completed the acquisition of freight forwarder Blu Logistics Brasil Transportes Internacionais LTDA to extend its business in Latin America.

The Danish forwarder announced in July that it had signed an agreement to buy the forwarder, which last year generated revenues of B$570m. The deal has now been approved by Brazilian Competition Authorities.

Founded in 2013 and headquartered in São Paulo, Blu employs more than 200 people across eight offices and offers air and ocean freight services including customs clearance, trucking and cabotage.

According to Scan Global, Blu Logistics had “growth rates of 27% and 47% in the last two years alone”.

Global SGL chief executive Allan Melgaard said: “Growing our presence in Latin America has been a priority for us for a while, and we are excited to add Brazil to our growing footprint through the acquisition of Blu. The company’s operational platform will help pave the way for SGL to establish a strategic presence in Brazil and expand our global reach, benefiting our valued customers.

“Importantly, Blu brings comprehensive industry expertise and local insights and provides us with a strengthened network in Latin America. We are very confident that bringing Blu onboard will support scaling our business and strengthening our offerings to new and existing customers.”

Gabriel Carvalho, chief executive of Blu Logistics Brasil, added: “In SGL, we have found a match in our customer-centric and solution-driven approach, which will benefit our customers extensively.

“We will continue to provide the personalised service customers are used to but simultaneously increase our focus on expanding our market position in Brazil and growing additional trade lanes, particularly from Europe and North America.”

Within the last years, SGL has expanded its footprint in South America through a combination of new market entries, expansions and acquisitions. In addition to Brazil, the company currently operates in Argentina, Colombia, Chile, Peru and Mexico.

Jörn Schmersahl, SGL chief executive for Latin America, said: “We are investing in building a strong Latin America region and presence. Besides a significant Intra-Latam trade, the region provides great opportunities for growth with North America due to existing free trade agreements, but also has strong and growing links with Asia and Europe.

“By expanding our regional network and expertise we offer improved opportunities to our customers with comprehensive transport solutions that fit their needs – within the region and beyond.”

SGL has been expanding globally through acquisitions and the opening of new offices for a number of years.

Earlier in July, the company continued its expansion with the opening of its first offices in Saudi Arabia.

And in June, it completed the acquisition of Italian freight forwarder Foppiani Shipping & Logistics following the approval of Italian competition authorities.

However, at the start of the year, SGL said that it would switch its acquisition strategy from adding new markets to growing in key existing markets.

The forwarder said that it will pursue a targeted M&A strategy ensuring all key countries and markets required to service global customers are covered in terms of 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,” SGL said.

Scan Global Logistics set to expand to Brazil with latest deal