Brambles announced today that it had agreed to acquire LeanLogistics, a leading provider of technology-based transport and supply chain solutions, for $45 million cash.
The Chief Executive Officer of Brambles, Mike Ihlein, said the acquisition would enable CHEP to provide a new and value-enhancing service to both existing and new customers.
â€œCHEP views and tracks millions of pallet movements through more than 21,000 locations across the USA every day,â€ Ihlein said. â€œAs a result, CHEP has a unique and immediate view of transportation in the USA across a wide range of manufacturers, logistics service providers and retailers.
â€œLeanLogistics provides on-demand network optimization solutions to more than 40 major corporations, including many in the fast moving consumer goods sector, with a network in excess of 4,000 transporters.
â€œCombining CHEPâ€™s extensive customer and information base with LeanLogisticsâ€™ customer network and innovative technology will enable us to offer a service that reduces transportation costs and optimizes supply chain efficiency. By helping our customers and carriers to operate more efficiently, the acquisition of LeanLogistics will also strengthen our commitment to delivering environmentally sustainable solutions,â€ Ihlein added.
Kevin Shuba, Group President, CHEP Americas said the acquisition of LeanLogistics was a very exciting development as it would enhance CHEPâ€™s customer service offering in the important and growing USA market.
â€We will now be able to offer customers the ability to optimize transport routes and reduce empty transport miles by using the most efficient transport provider available. This will be possible through the leveraging of CHEPâ€™s extensive database of supply chain movements and the innovative technology of LeanLogistics,â€ Shuba said. LeanLogistics will operate as a division of CHEP.
The President and CEO of LeanLogistics, Dan Dershem, said that joining the CHEP team would enable expansion of its technology to more customers across the USA and, in the future, to other countries. Dan Dershem will continue to manage LeanLogistics, reporting to Kevin Shuba.
The acquisition is expected to be completed on March 7, 2008.
CHEP is the global leader in pallet and container pooling services serving many of the world’s largest companies. The company has more than 7,700 employees and operates in 44 countries. Combining superior technology and an asset base of more than 285 million pallets and containers, CHEP offers its customers exceptional value, a platform that enables reduction in customer product damage, and an environmentally sustainable logistical solution. Supply chains served include consumer goods, produce, beverage, and the automotive industry. With global partners that include Procter & Gamble, SYSCO, Kellogg’s, Kraft, Nestle, Ford and GM, CHEP is known for Handling the World’s Most Important Products. Everyday. For more information about CHEP, please visit: www.chep.com.
LeanLogistics is based in Holland, Michigan and employs more than 50 people. It was founded in 1999 by a team of highly recognized professionals with many yearsâ€™ experience in the USA transportation and third party logistics industries. LeanLogistics supports over 40 major corporations with 20,000 users interacting with more than 4,000 transporters â€“ about 150 million transactions are processed annually.
LeanLogisticsâ€™ key service offerings include:
â€¢ On-Demand TMSÂ® – a web-based transportation network that provides complete daily planning, execution, settlement and procurement functions. On-Demand TMSÂ® currently processes five million shipments a year, representing over $4 billion in annual freight charges;
â€¢ Managed Transportation Services â€“ an innovative and customized combination of On-Demand TMS software and business best practices that enables customers to outsource transportation related activities while retaining strategic relationships and contracts. Managed Transportation Services delivers increased efficiency and reduced transportation costs.
LeanLogisticsâ€™ major customers in the USA include:
â€¢ Procter & Gamble
â€¢ Pepsi Americas
â€¢ Barilla America
â€¢ Bay Valley Foods
â€¢ Johnsonville Foods
â€¢ Pinnacle Foods
â€¢ Otis Spunkmeyer
â€¢ Kellogg Company
For additional information, visit www.LeanLogistics.com