Geodis has signed a binding agreement to acquire Keppel Logistics in an effort to increase its contract logistics footprint and e-commerce fulfilment services in Singapore and Southeast Asia.
Based in Singapore, Keppel Logistics is a contract logistics specialist with close to 500 employees. It is ranked in the top 5 contract logistics players in Singapore and owns over 200,000m2 of warehouse space in Singapore, Malaysia and Australia.
Keppel offers end-to-end B2B and B2C logistics solutions, from warehousing to last mile delivery, with skills in e-commerce omnichannel service offerings, thanks to its fast-growing UrbanFox platform.
Geodis said in a statement that the acquisition is a significant step along its strategic roadmap for the Asia Pacific region, where it currently employs 3,700 people spread over 76 sites.
The acquisition will reinforce Geodis’ position as a leading logistics service provider, further expanding its footprint by adding to recent investments in contract logistics sites in India, South Korea and Australia.
Marie-Christine Lombard, Geodis CEO, said: “The acquisition of Keppel Logistics will mark a key milestone in Geodis’ Asia-Pacific ambitions. Keppel Logistics is a well-established regional player, with a strong focus on innovation.
“Through this acquisition which will combine Geodis’ worldwide leadership with Keppel Logistics’ robust local footprint, we believe we can create great value for our customers, facilitating their growth, particularly in the e-commerce Asian market”.
Onno Boots, president and CEO of Geodis Asia-Pacific said: “As one of the leading logistics providers, we are continuously looking for ways to evolve the region’s supply chain and our clients’ eCommerce ecosystem. The acquisition will strengthen our contract logistics and digital omnichannel capabilities, elevate our end-to-end logistics solutions and bring greater value to customers across the region. By enhancing our eCommerce services, we will provide brands with the ability to scale their online presence seamlessly and effectively navigate supply chain challenges to accelerate their growth in this region”.
Thomas Pang, CEO of Keppel Telecommunications & Transportation added, “For over 50 years, Keppel Logistics has been providing customised integrated logistics in Singapore. We believe the integration of Keppel Logistics as part of Geodis will help accelerate Keppel Logistics’ growth, allowing it to scale up and provide even better value propositions to both its customers and internal stakeholders”.
The acquisition is subject to regulatory review and approvals, which are expected to be obtained by end of 2Q22. Both companies will operate as independent businesses and run their operations as usual until that time.
