The sale of Belgian based logistics company ABX Logistics is finally set to take place, according to reports in the local press.

Almost a year ago it was revealed that Belgian railways groups SNCB Holding, its parent, had signed a binding Memorandum of Understanding (MoU) with a major European investment fund over the acquisition of 100% of its shares. Whilst ABX Logistics has never officially confirmed the name of the buyer, press reports indicate that it is London based 3i.

Since then progress with the deal has been slow. The MoU could only come into effect subject to the approval by the European Commission of the company’s restructuring plans, involving 176 euro million of subsidy. This was finally gained in December 2005. The approval by the EC was dependent on the transfer of all of ABX Logistics’ capital to a private investor within 12 months of the decision.

In the late 1990s ABX Logistics was one of the most acquisitive companies in Europe, building a multinational portfolio of well known logistics and forwarding companies. However, due to falling volumes and the inability to integrate its purchases, the company started to haemorrhage cash and was forced to sell off parts of its business and look for subsidy from its nationalised parent. This subsequently required the go ahead from the European Commission.

The price which the investor will pay for ABX Logistics, which in 2004 had revenues of 2,400m euro and profits of 12m euro, is believed to be around 80m euro including future investment in the company. Management still has to confirm the deal officially although in a statement it said that the company would be sold to the investor by the end of the summer. It is believed that the company will remain headquartered in Belgium for at least four years.

Source: Transport Intelligence

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