Published: 12:10, 10 January 2017 |
Updated: 15:08, 10 January 2017
UPS, the global package delivery company, has bought a freight forwarding business in the county as it aims to boost its presence in the European logistics market.
The US giant, which is listed on the New York Stock Exchange, has taken control of Dover-based Freightex for an undisclosed sum.
UPS chief commercial officer Alan Gershenhorn said the deal gives UPS “an immediate, knowledgeable and competitive UK and European presence”.
Founded in 2001, Freightex had revenues of £22.5 million in the year to the end of March 2016, up 12%, while pre-tax profits grew 2% to £632,000.
The firm employs 40 people in the town and 85 across its eight sites.
It uses a network of lorry and truck businesses to arrange transport of goods across Europe for its customers, from truckloads to half-truckloads and temperature-controlled or specialist transportation.
The European third-party logistics market, in which Freightex operates, is thought to be worth $174 billion (£143bn) and growing at a faster rate than the total shipping market because of its greater efficiency.
More than 500,000 road freight carriers operate across the continent, with UPS eyeing “significant opportunities” to grow the number of carriers it uses. It has had a presence in Europe for more than 40 years.
The deal follows UPS’ takeover of North American freight forwarder Coyote Logistics in August 2015, which has systems it aims to combine with its latest acquistion.
Freightex chief executive Tim Phillips will continue to lead the business, which will operate as a wholly-owned subsidiary of UPS.
He said: “We are excited to join the UPS organization and Coyote brokerage operations.
“UPS and Coyote have industry-leading technology, a no-excuses customer service culture, and a proven record of success.
“We will improve our efficiency through Coyote’s technology and use of the UPS network, while continuing to out-service the competition and provide results that customers count on us to deliver.”
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