Danish freight middleman Scan International Logistics has made the biggest funding in its historical past, agreeing to accumulate Portland, Oregon-based logistics supplier OIA International in a deal it mentioned late Wednesday that may put the corporate among the many prime 20 freight forwarders on the earth.
Scan International Logistics mentioned the proposed acquisition will strengthen its presence in key markets and develop provide chain capabilities accessible to clients past conventional freight forwarding.
Based in 1988, OIA International employs greater than 1,200 individuals throughout greater than 60 places of work in over 30 international locations. Its capabilities span freight forwarding, customs brokerage, contract logistics, undertaking logistics, prime contractor administration, packaging design and supplies administration. OIA had $780 million in income final yr.
Scan mentioned the acquisition will complement its present providing whereas considerably strengthening its place in the USA and different strategically essential markets. The mix will even present clients entry to a broader vary of provide chain options, making it simpler to handle more and more complicated provide chains.
Why It Issues: Acquisitions, mergers and investments within the logistics business have accelerated this yr, particularly in the USA, because the freight cycle turns extra optimistic.
Armstrong & Associates ranks Scan because the nineteenth largest freight forwarder on the earth based mostly on gross income and ocean/air quantity. It’s close to the highest 50 logistics suppliers by gross income. Full-scale logistics suppliers present warehousing, distribution and provide chain administration along with arranging freight transportation for cargo homeowners.
Scan has quickly expanded since 2018 by way of a sequence of acquisitions in Africa, Europe, and North America, and has additionally opened places of work in a number of different international locations. In 2021, it purchased the worldwide forwarding division of U.S. trucking big Werner Enterprises. Scan has greater than 5,100 workers and operates greater than 200 places of work all over the world.
The corporate had $2.82 billion in income final yr. Adjusted earnings earlier than curiosity, taxes, depreciation and amortization was up 12% yr over yr to $244.2 million. Scan misplaced $101.5 million, which administration attributed to refinancing of debt and financing the acquisition of ITN Logistics Group in Canada.
The OIA transaction is topic to customary regulatory approvals. Phrases of the deal, which is anticipated to shut within the first quarter of 2027, weren’t disclosed.
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