In a move that has taken the market by surprise German logistics and postage giant DHL Supply Chain, has acquired 100 per cent of prominent Australian logistics and transport company, the Glen Cameron Group, which operate a fleet of more than 1000 trucks and trailers and employs more than 800 people around the country.
DHL Supply Chain is a subsidiary of Deutsche Post Group (DPDHL), which is the the German Postal service and has acquired one of Australia’s largest and most successful national logistics specialists with expertise in both road freight and contract logistics.
The deal follows Japan Post’s acquisition of the Toll Group in 2015 for a massive $6.5 billion, but it had to write down the bulk of Toll’s value only two years after the deal due to its weak performance. In 2021 Japan Post off loaded Toll Global Express for a meagre $7.8 million, absorbing a massive loss in the deal. By selling Toll’s logistics and home delivery operations in Australia and New Zealand to Allegro Funds, Japan Post assumed several billion dollars worth of debt and logged an extraordinary loss of about $624 millionfor the Japanese financial year up to March 2021.
The arcane and labrynthine structure of Toll would have been much more challenging for Japan Post than DHL’s purchase of the Cameron Group, which by all reports and indications is a far better run and structured operation than its large4r rival Toll was.
DHL in its statement today said that “the strategic combination of the Glen Cameron Group with DHL Supply Chain will strengthen DHL’s position in the evolving Australian road freight market and create one of the largest logistics companies in the country with combined revenue of more than AU$1 billion”.
“This is a unique opportunity for DHL Supply Chain to add additional high-quality transport services to our warehouse and transport solutions in Australia,” said said the CEO of DHL Supply Chain Australia and New Zealand, Steve Thompsett.
“We look forward to offering a fuller range of transport services to existing and new customers. DHL is well recognised for having a strong warehouse base and with this acquisition, we will be strengthening our offer with four services; domestic nationwide general freight, domestic nationwide express freight, specialised services and contract logistics transport – with dedicated solutions for customers,” Thompsett added.
DHL said that the Glen Cameron Group is recognised as a leader in freight and contract logistics and DHL will benefit from the expertise of the Cameron Logistics’ team in the consumer and grocery sectors.
The founder and executive chairman of the Glen Cameron Group, and the person who has driven the company from the start, Glen Cameron, said he believed the deal would take the company to the next level.
“Since founding the Glen Cameron Group 47 years ago and over the last five decades we have built a successful, diverse, and resilient business,” said Glen Cameron.
“What began as one eight-tonne truck in 1975, has evolved to be one of Australia’s largest transport and logistic business and together with DHL, we can take our business to the next level,” Cameron added.
“The Glen Cameron Group will benefit from DHL’s large-scale network in over 220 countries and global forwarding expertise in air, ocean and road freight to ensure strong development opportunities for the business, its customers, and its employees,” Cameron said.
“I’m excited to see the Glen Cameron Group join with DHL and together, we can increase our footprint and become one of the largest transport and logistics businesses in this country.
“With the backing of a highly successful global corporate business, we have an opportunity to invest in growth and open new opportunities for our employees, and this marks an important milestone to continue an important legacy in the Australian transportation industry,” Cameron concluded.
Meanwhile Terry Ryan, the CEO of DHL Supply Chain, Asia Pacific said the acquisition signifies DHL’s commitment to grow the business in Australia.
“The acquisition will enhance our service offering to provide the best solution to our customers, the supply chain is evolving quickly and with significant transport operational capability, we will be more agile, respond faster to changing demands, and continue to deliver on our promises,” Ryan said .
DHL Supply Chain said in tis statement that it provides customers with extensive logistics and data management solutions for its supply chain management and operations, with a focus on sustainability and quality.
The company added that a global network of supply chain specialists and strong local expertise are among the its key capabilities, and in Australia, DHL Supply Chain currently employs around 4,000 logistics personnel at its warehouses and transport operations.