The U.K.’s Transport Intelligence reported recently that Sir John Allan, CEO of Exel, continues to insist Exel will remain independent and it is, in fact, looking for acquisitions to strengthen its ocean freight division. Allan said Exel is unlikely to make any major acquisitions. Company executives had commented earlier during its earnings report for 2004 that it did not intend to spend more than £100 million ($182 million) on acquisitions.
Earlier this year, rumors had circulated that Exel might be an acquisition target of UPS, Deutsche Post World Net (DPWN), or FedEx. The company offered no comment at that time.
Now speculation has begun that DPWN is, in fact, in the market and it has its eye on U.K. based 3PL Wincanton. Reports suggest the Dutch firm TNT could also be looking at Wincanton, but TNT’s official position is not to comment on market speculation.
DPWN board member Frank Appel has been quoted as saying DPWN is looking for mid-sized companies to develop its business in the U.S. and Asia Pacific regions. The revenue target for such acquisitions is in the range of Euro 10 to Euro 150 million ($12 million to $184 million).
When questioned, Transport Intelligence reported, Appel would only confirm DPWN was in negotiations to buy more of the German KarstadtQuelle’s logistics operations.DPWN’s recent acquisitions include Danzas, Nedlloyd, ASG and AEI, along with additional shares of DHL International (which acquired Airborne Express in the U.S.). DPWN currently holds a 75% majority in DHL.