AUSTRALIA’S biggest logistics company is buying a logistics company to help its clients sell goods to China.
Key points:Ryder is buying Holt logistics for $9.2 billion in a deal that includes a $1.4 billion equity stakeThe deal will provide access to China’s logistics market in Asia and EuropeThe deal is expected to close in the second half of the yearIt is believed to be the first major foreign investment by an Australian company in a logistics sector.
The company, Holts Logistics, is one of the largest logistics firms in the world.
Its chief executive officer, Paul Wainwright, said the investment would provide access for its clients to the Chinese logistics market.
“It’s a fantastic opportunity to open a direct route to China from Melbourne,” Mr Wainwright said.
“I’m really excited about it.”
Mr Wainright said the company was targeting to be an “enterprise logistics hub” for the region.
“The biggest markets for our clients are China and Europe, and we want to be able to help them deliver their products from the UK and other markets as well,” he said.
Mr Wainswart said the deal will allow the company to be a “first-class logistics hub in the Asia-Pacific”.
“It provides access to a huge market of people and companies looking to bring goods from China to their home markets,” he told reporters.
“We’ll be able access to more and more countries.”
Mr Watmore said Holts logistics would be able “take advantage of a growing Chinese market”.
“We’re working with a number of suppliers in China,” he explained.
“Some of them are big exporters, and some are small suppliers.”
In addition to that we’ve got a big customer in Vietnam.
“MrWainwright said the Holts deal would see Holts move its headquarters to China and move from Melbourne to its new site in Shanghai.
He said Holt was “going to be very, very happy” with the decision.”
There’s a lot of excitement around Holts, and the people who work at Holts are very excited,” he added.”
So it’s really exciting.”‘
We’ve got no clue’ on the scale of the dealThe deal would be a big boost for Holts’ growth prospects in China, where it already has its biggest market, the Hong Kong Special Administrative Region.”
This is a big, huge opportunity for Holton,” Mr Watmore told reporters in Shanghai on Monday.”
China is a huge customer for Holtons and they’re a big player in Asia, and it’s great for us to be in a position to help our Chinese clients.”‘
A great opportunity’ for HoltThe Chinese market was the biggest area of growth for Holmans growth in China from the fourth quarter of 2016 to the second quarter of this year, Mr Watroughs said.
The deal “represents another huge opportunity” for Holters global growth, Mr Wainsawer said.
It would give Holts access to the largest Chinese market, he said, which was a key driver of the company’s growth.”
That’s what we’ve been looking for and what we’re excited about,” he continued.”
And now we’ve just got a very big opportunity there.
“To be able [to deliver] to the Hongkong market is a very good opportunity.”
Mr Widtsoe said Holters deal was “not only good for the Holton family but also for Australia”.
“The Holts family has been doing this for 50 years, and this is another fantastic opportunity for us,” he confirmed.
“You can’t have an environment in which a company can’t do this.”‘
I think this will be a great investment’The deal, which is expected close in February, will give Holt access to an even bigger market than the one it currently controls.
“What we’re looking to do is to provide a direct pathway to the Asia Pacific market,” Mr Widtsov said.”[The deal] will help us grow into that market and it will be very good for us.”
Mr Wright, the Australian company’s CEO, said Holton’s “biggest growth markets” in Asia were China and Japan.
“These are the areas that we need to grow,” he admitted.
“With the growth in the logistics business we have a very clear path to get there.
It’s a really good opportunity for the business.”
He said the Chinese market would “provide us with the opportunity to be successful”.
“China has been our biggest market for some time,” Mr Wright said.
He added that the Chinese demand for logistics was “growing at a very high rate”.
“This will allow us to deliver to the market where it’s growing the fastest and in the most efficient way possible,” MrWiddow said.
“It’s going to be exciting.”