Damco has signed an agreement to acquire Pacific Network Global Logistics (PacNet), a freight forwarder in China and Australia.
Damco is the logistics arm of the A.P. Moller-Maersk Group with 10,800 employees worldwide and a turnover of $2.8 billion in 2011. PacNet, headquartered in Australia, has 382 employees and a turnover of $180 million in fiscal year 2011.
Damco said it had "been looking to strengthen its overall presence in Australia in the segments where PacNet is active for some time.
Combining forces with PacNet is in that context a very logical step and an almost perfect fit."
The company said it will "gain market leadership positions in retail and lifestyle sectors in Australia and further strengthen its position in air freight from China to Australia. Customers of PacNet and Damco will receive highly competitive services, increased frequencies and better access to peak capacity in the fast-growing China-Australia trade lane."
"PacNet has a high reputation for service in Australia, in the apparel, footwear and retail sectors,” said Rolf Habben-Jansen, chief executive officer of Damco. “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."
“We have seen a growing demand for a broader outreach in recent years and we feel that by joining Damco we can provide our customers with a strong global presence,” added Paul Milborrow, CEO of PacNet.
PacNet senior management will join Damco, and the companies said existing operations will be run by largely the same people and the same teams.
This week Damco also issued a warning about fraudulent use of its brand, logo and imagery.
"The fraudsters call themselves ‘Damcolo Container Lines’ (but may also appear under different names) and try to mirror the Damco Website and contact customers with false bills of lading. ‘Damcolo Container Lines’ is not in any way affiliated with Damco or any other business in the A.P. Moller-Maersk Group," the company said. It asked if businesses have any any suspicion about the authenticity of a bill of lading, or any other activity, to contact their local Damco office. - Chris Dupin