The deal highlights the sharp uptick in transport and logistics-related M&A transactions
Simpson Grierson has advised the shareholders of local freight forwarder Orbis Global Logistics Limited on its sale to Denmark-headquartered logistics company Scan Global Logistics (SGL).
Lead partner Michael Pollard, who received support from solicitor Samantha Williams on the transaction, said that the deal “reflects the marked increase in M&A deals in the transport and logistics sector.”
“While logistics has always been a cornerstone of every business, pandemic-driven disruption has increased the importance of access to quality specialists in the freight forwarding space,” Pollard said. “Generally, we are seeing greater investor activity in the transport and logistics sector and expect this to remain the case going forward.”
Orbis, which was established in 2017, has branches in Auckland, Wellington and Tauranga. It has expanded quickly over the past four years, climbing to a strong position in the local freight forwarding market.
The acquisition by SGL enables Orbis to sustain its momentum in New Zealand while allowing SGL to extend its presence into the Pacific region, Pollard explained. The transaction is expected to reach completion on 5 October.
“We are thrilled that Orbis is joining our family, which marks another important milestone in our global expansion plans. The Pacific region remains a key market for SGL in the years to come, where we expect significant growth and see strong demand. While we share a similar business approach, most importantly, we see a perfect match with our company DNA and the virtues we value,” SGL Group CEO Allan Melgaard said in a press release.
SGL pointed out that both companies operate under the same customer-centric business model that is “rooted in providing entrepreneurial transport and logistics solutions to a diverse portfolio of customers.”
“SGL is the perfect fit for us on a cultural level. It also gives us the ability to utilise their extensive network and infrastructure to expand within the Pacific Region and beyond, to the benefit of our customers and staff alike,” Orbis director and co-founder Troy Hageman said. “The Orbis team and directors look forward to our next chapter with SGL, remaining focussed on providing our customers with the service and care that they are accustomed to, and with the additional capability that SGL brings.”
Hageman will continue to manage Orbis alongside fellow founders Stuart Kingdon and Stephen Fredricson.
“Under the continued leadership of Troy, Stephen and Stuart, I am confident our company’s global reach and strengths will be utilised in full and complement Orbis' high-quality solutions and market position to deliver an even better value proposition to our existing and future customers,” SGL Pacific region CEO Søren Madsen said.
