Damco to buy PacNet
Damco has agreed to purchase Pacific Network Global Logistics (PacNet), a freight forwarder with primary operations in China and Australia, for an undisclosed amount. The acquisition will strengthen the Copenhagen-based forwarder’s operations in Australia, Hong Kong and Mainland China, according to a press release.
Australia-based PacNet, which has significant market share in the Australian apparel, footwear and retail sectors, posted revenue of $180 million in fiscal-year 2011. Damco, on the other hand, saw revenues surge to $2.8 billion in 2011. But the company had been looking to bolster its Australian operations for some time.
Damco CEO Rolf Habben-Jansen said acquiring PacNet is a key pillar in the company’s overall strategy to grow its global presence. The acquisition also made sense from a logical standpoint, he added.
“We are combining two businesses with very aligned strategies, complementary skills, customer bases and geographic strengths, and we have already seen that our cultures match very well, which is an excellent basis to further improve our ability to serve our joint existing and future customers even better,” Habben-Jansen said in a statement.
Paul Milborrow, CEO of PacNet, said the acquisition will also open up new markets for his customers. “We will now create a leading freight-forwarding business in our region with a market-leading position in key industries, enabling us to better cater to the demands our customers are raising,” he said in a statement.
Acquiring PacNet isn’t the only change on the horizon for Damco. The company is currently relocating its corporate headquarters from Copenhagen to The Hague, a move that it slated for completion in the first quarter of 2013. In a press release, Damco explained that the new location is closer to the heart of the European forwarding sector and will help it achieve top-5 status in the global logistics industry.