FM Logistic's acquisition of McLane unit opens up Brazil market
FM Logistic and McLane Company Inc. have come to an agreement on the purchase of the logistics subsidiary of McLane in Brazil.
- (1888PressRelease) July 10, 2013 - The acquisition of Mc Lane's Brazilian logistical division by FM Logistic marks a new stage in FM Logistic's strategy for external growth, coming just one month after the acquisition of Univeg Logistics Russia by FM Logistic. The Brazilian subsidiary of FM Logistic is to be known as FM Logistic do Brasil, or FM Brazil.
Under the FM Logistic do Brasil name, FM Logistic will operate in the Latin American country out of four sites covering an area of over 200,000 square metres, with more than 1,150 employees and a turnover of €47 million (2012 figures). All the facilities are located close to the country's largest consumer centres, i.e. the cities of Sao Paulo and Rio de Janeiro, together with the southern regions of Brazil. For its part, further to the sale of its Brazilian logistics unit to FM Logistic, US-based McLane Company Inc. intends to focus on its core wholesale business within the USA.
FM Logistic is taking over a portfolio of major customers in Brazil across a range of sectors, from cosmetics and consumer electronics to consumer goods and automotive. Besides, the group intends to leverage its entry into the South American market in order to reinforce its transport and co-packing business within three years. A specific project for growth centred on Brazil's North-East is also being considered.
FM Logistic explains that, thanks to the acquisition, it has acquired a foothold in a country that is experiencing strong growth. FM Logistic looks forward to serving a logistics market whose players are seeking reliable and lasting partnerships that can deliver faultless quality of service, a high-added-value range of services, optimised processes and, above all, solid support for sustained growth.
"Logistics is a major issue in the Brazilian market. Demand is high, and the ability to provide an effective response is a strategic requirement for the development of the country. Our customers tell us that, [and] that is what is behind our decision. We are beginning operations in Brazil because we want to address the needs of our international customers by offering them a large and secure range of options. We want to set the standards in the areas of operational excellence and service quality [and] offer our customers in Brazil a top-notch service that is comprehensive and is supported primarily by the quality of our staff and processes," explains Mr Jean-Christophe Machet, CEO of the group.
"Besides, we want our action to be supported by the key values of the group, and we will manage growth with a commitment to the people who make up FM Brazil [or FM Logistic do Brasil], and also to the environment, the community, and society at large. I would, therefore, like to welcome our new Brazilian colleagues to FM Logistic. They now make up a significant new base from which to develop our group," concludes Mr Jean-Christophe Machet.
FM Logistic do Brasil will be managed by Ms Michèle Cohonner, who previously spent four years as General Manager developing the FM Logistic group's business in Russia. Ms M Cohonner, whose professional excellence is widely recognised, moved to Sao Paulo more than a year ago.
"I am proud to represent FM Logistic, a French group, in this warm and talented country. We will combine our expertise with the skills of the people who now make up FM Brazil. One of our priorities will be to rapidly put in place a recruitment and training policy that will enable us to waste no time in preparing the managers of the future," says Ms M Cohonner.
With recognised expertise in warehousing, transport, packaging and supply-chain management, FM Logistic has over 45 years' experience and operates in 12 countries, with 500 million parcels prepared in 2012, 50 million pallets received and dispatched, 550,000 vehicles loaded, and 900 million packs assembled in a total utilised area of 2.5 million square metres.
The acquisition of McLane's Brazilian operation follows the announcement of the buy-out of Univeg Logistics Russia, a specialist in fresh produce, in early June of this year. Fresh-produce logistics is a key segment for FM Logistic, complementing its range of services for retailers.
These two consecutive acquisitions clearly demonstrate the group's determination to take on the challenges of the global logistics market, and to secure the means to realise its strategic ambition under Ambition 2022, its 10-year plan.
"Ambition 2022 reflects our strong commitment to consolidate the existing core businesses of the group, further reinforce its operations in Europe, and increase its geographical cover as part of international development. And we want to achieve that through the continual improvement of our processes and management, so as to add to our operational excellence," explains Mr Jean-Christophe Machet, CEO of FM Logistic.
About Mc Lane Company Inc.
McLane Company Inc.'s head office is in Temple (Texas). The US-based company is a $44 billion supply-chain services group, providing grocery and foodservice supply-chain solutions for convenience stores, mass-market merchants, drugstores and chain restaurants throughout the United States.
McLane - through McLane Grocery, McLane Foodservice, and recent foodservice acquisition Meadowbrook Meat Company Inc. (MBM) - operates 80 distribution centres and one of the USA's largest privately owned fleets of vehicles.
The company buys, sells and delivers more than 50,000 different consumer products to nearly 90,000 locations across the USA. In addition, McLane provides alcoholic-beverage distribution services through McLane Beverage Distribution Inc. and Empire Distributors Inc., the latter being a company that has been acquired by McLane Company Inc.
McLane is a wholly owned unit of Berkshire Hathaway Inc. (NYSE: BRK) and has 20,000 staff.
For more information, please go to: www.mclaneco.com
About FM Logistic
FM Logistic is the logistics partner of reference of manufacturers and retailers, responsible for optimising their global supply chains. FM Logistic's customers include manufacturers of food, cosmetic, healthcare, high-tech and consumer products, as well as retailing giants.
FM Logistic's head office is in Phalsbourg, in the département of Moselle, in Eastern France. The French-based company has been recognised for its expertise for 45 years and employs over 15,300 staff. Turnover rose by 10% to reach € 886 million on 31 March 2013, at the end of the group's fiscal year.
For more information, please go to: www.fmlogistic.com
For further information, please contact :
Quote ref. : FTPB3870
Philip JOLLY - Press Officer
UBIFRANCE Press Office in London
Tel: +44 (0) 207 024 3640
philip.jolly ( @ ) ubifrance dot fr
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