Exel Buys Fujitsu Logistics

Exel Buys Fujitsu Logistics

Copyright 2004, Traffic World, Inc.

British logistics provider Exel is acquiring Japan''s Fujitsu Logistics, expanding its stake in the Asian contract logistics market.

The acquisition will help Exel expand its international forwarding footprint into Japan''s domestic logistics market, the company said. The purchase more than triples the size of Exel''s operations in Japan.

Exel purchased the $368.7 million logistics company from Fujitsu Ltd. For approximately $46 million in cash, with an agreement to pay a further $23 million after three years if the business meets certain goals. Exel agreed to provide the logistics services FJL provided to its parent, a far-flung technology and communications conglomerate.

Exel said its operations in Japan will be integrated with FJL over the coming months. FJL, founded in 1988, currently employs more than 470 employees and 1,100 contract staff. It has 57 distribution and warehousing locations throughout Japan, including a network of distribution centers with cross-docking and storage capabilities.

FJL also operates a road and railfreight network. Services offered by the company include packaging design, service logistics, spare parts distribution, equipment installation and electronics recycling.