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Yusen to buy Keswick’s Romanian logistics arm

[ November 17, 2017   //   ]

UK-based Keswick Enterprises Group is to sell its Tibbett Logistics subsidiary in Romania to NYK forwarding subsidiary Yusen Logistics for an undisclosed sum, subject to Romanian Competition Council approval. The sale is expected to complete before the end of the year.

Tibbett Logistics will become a wholly owned subsidiary of Amsterdam-based Yusen Logistics (Europe) and all management and staff will move across on their existing terms and conditions and in the same work locations, including chief executive, David Goldsborough. Current chairman Gavin Withers will remain deputy chairman of Tibbett Logistics while also retaining his main board directorship at Keswick Enterprises.

John Harvey, executive chairman of The Keswick Enterprises Group, will have an advisory role with Yusen Logistics and will continue to be involved in Tibbett Logistics’ developments in Romania.

Yusen Logistics itself was the subject of a buyout in October, when parent NYK Group said it would acquire the remaining 41% stake of the freight forwarder from external shareholders.

After making an initial investment in a Romanian freight business in 2005, Keswick Enterprises established Tibbett Logistics in 2010 when it bought out its co-shareholder in the business. The company was then refocused on contract logistics and related and since then has increased its presence in contract logistics, warehousing, transport and intermodal. The business now employs 1,300 people at 15 locations in Romania – including a bonded intermodal terminal in Bucharest. It operates a total of 116,000sq m of warehousing in the country. Some 87% of revenues are generated through long-term contracts, typically with major multinational companies, and it is particularly strong in the retail and automotive industries.

Yusen Logistics (Europe) is active in 17 countries across Europe, but currently has no infrastructure in Romania. In a statement, Yusen Logistics said: “Romania is currently one of the fastest-growing European economies, with booming investments in retail and manufacturing and a strong presence in numerous automotive companies. This acquisition provides Yusen Logistics with access and insight into the Romanian market as well as a well-established regional network of warehousing, intermodal and trucking operations run by an excellent team of professionals in Romania. This allows Yusen Logistics’ current and potential customers to benefit directly from comprehensive high-quality logistics services for their current and future opportunities in this fast-growing region.”

The Keswick Enterprises Group’s remaining European supply chain interests include freight forwarding – it is owner of Spatial Global – contract logistics, co-packing/contract packing, recycling, e-fulfilment, procurement and logistics consultancy.

John Harvey said: “We believe the sale is in the best interests of all stakeholders – Tibbett Logistics’ customers, suppliers, management and personnel, as well as Keswick’s shareholders and associated charities. It represents an excellent fit in terms of skills, sectors, services and geography.”

Yusen Logistics Europe chief regional officer, Shoji Murakami, said the agreement “provides us with both critical mass and insight in the Romanian market. These advantages will give Yusen Logistics the right tools to increase our activities and to optimally serve our customers in this key region.”

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