EXEL TO BUY FX COUGHLIN GROUP
Exel Plc., the London-based global logistics service provider, said it plans to acquire FX Coughlin Group, a U.S. automotive logistics firm, for $140 million in cash.
Exel also said it would make further payments of up to $130 million, if Coughlin’s performance exceeds its current profitability.
Coughlin provides supply chain services for such customers as Ford, DaimlerChrysler and General Motors. The Coughlin Group'reported underlying profits of $20 million in 2000, and had net tangible assets of $9 million.
“Increasingly, higher value products are being shipped longer distances, just in time to ensure lower supply chain inventories while maintaining delivery performance,” Exel said in a statement. “This move fits well with our expansion plans. It extends our footprint to backup our ground-based automotive interests.”
'''The acquisition requires regulatory approval in'Europe and in the U.S. Exel said that it'expects the deal to close by the end of April. The FX Coughlin acquisition is another purchase in a string of deals, including the merger of MSAS and Exel and the acquisition of Mark VII, that have propelled Exel into the top ranks of global forwarding and logistics.