GEODIS announced that it has signed a binding agreement to acquire Singapore-based contract logistics provider, Keppel Logistics for US$80 million.

The French forwarder said the move will "significantly increase" its Contract Logistics footprint and e-commerce fulfillment services in Singapore and Southeast Asia.

"The acquisition of Keppel Logistics will mark a key milestone in GEODIS' Asia-Pacific ambitions. Keppel Logistics is a well-established regional player, with a strong focus on innovation. Through this acquisition which will combine GEODIS' worldwide leadership with Keppel Logistics' robust local footprint, we believe we can create great value for our customers, facilitating their growth, particularly in the e-commerce Asian market," said Marie-Christine Lombard, chief executive officer of GEODIS.

Based in Singapore, Keppel Logistics is a Contract Logistics provider with close to 500 employees. It is active throughout Southeast Asia and is ranked in the top 5 contract logistics players in Singapore.

GEODIS' Asia-Pacific expansion

GEODIS noted that Keppel owns over 200,000m2 of warehouse space in Singapore, Malaysia, and Australia and offers end-to-end B2B and B2C logistics solutions, from warehousing to last-mile delivery, with strong skills in e-commerce omnichannel service offerings.

"This project is a significant step along GEODIS' strategic roadmap for the Asia Pacific region, where GEODIS currently employs 3,700 people spread over 76 sites. The acquisition will reinforce GEODIS as a leading logistics service provider, further expanding its footprint by adding to recent investments in contract logistics sites in India, South Korea, and Australia," it added.

Onno Boots, president, and CEO of GEODIS Asia-Pacific noted that GEODIS is always on the lookout for ways to expand its business — particularly in e-commerce.

"The acquisition will strengthen our contract logistics and digital omnichannel capabilities, elevate our end-to-end logistics solutions, and bring greater value to customers across the region," Boots said.

"As one of the leading logistics providers, we are continuously looking for ways to evolve the region's supply chain and our clients' e-commerce ecosystem," he added.

Thomas Pang, CEO of Keppel Telecommunications & Transportation, said the integration of Keppel Logistics as part of GEODIS will help accelerate Keppel Logistics' growth, "allowing it to scale up and provide even better value propositions to both its customers and internal stakeholders."

GEODIS said the acquisition is subject to regulatory review and approvals, which are expected to be obtained by end of Q2 2022.

Both companies will operate as independent businesses and run their operations as usual until that time.