The Danish investor, Axcel, has acquired UK-based Carousel Logistics and Denmark’s Day and Night Express (DANX), to form a pan-European logistics network for time critical in-night services. Carousel and DANX, whose business models largely complement each other, will be merged to become a heavyweight in aftermarket and spare parts logistics. The deal still requires clearance by the competition authorities, which is expected to happen this quarter.
Carousel and DANX pursue a complementary business model, concentrating on in-night supplies particularly for customers of the agricultural, MedTech, and automotive sectors. Their networks do not overlap as Carousel offers the market time-critical services primarily from Germany to the UK, Ireland, and the Iberian Peninsula, whereas DANX is particularly strong to Scandinavia and the Baltic region. Together, the merged companies generate annual sales of 190 million euros, is stated in their joint release. Both players keep their brands for the time being, because there is not yet a common company name.
Change in leadership
In contrast to the ad-hoc time-critical market, this segment is characterized by long-term contracts with customers. This perpetuates the business and makes it very predictable and robust
mid-term, states Franz-Joseph Miller, Chairman of the Board at Carousel Logistics.
As soon as the takeover is consented by the competition watchdogs, he will retire from his role as Chairman of Carousel Its founder and former CEO, Graham Martin, will also withdraw from the
project after more than 3 decades of leadership.
In his parting statement, Mr. Miller emphasizes:
“I am very proud of the growth Carousel has achieved over the past few years. We have built a thoroughly customer-focused business model that is designed to exceed our clients’ expectations and needs, and that has grown significantly faster than the market.”
Well established in the market
Customized solutions and networks tailored to the needs of its clients are Carousel’s major strongpoints, complemented by service reliability and transparent business processes.
“We have developed a pan-European vision and successfully executed it for the benefit of our customers and investors. With a great team and a scalable logistics platform, we have been able to
realize exceptional growth with continued great future potential,” says Mr. Miller.
The merged company will be headed by DANX’s CEO, Klaus Rud Sejling, while current Carousel helmsman, Jonathan Simpson-Dent will succeed Mr. Miller as Chairman. In contrast to other companies, the
merged in-night logistics service provider will not have a classic headquarters. Since the leadership team is spread across Europe, the business will be managed and coordinated from different
locations.
Adopting the cargo-one model
A very similar model was already introduced by the electronic air freight booking platform, cargo.one, which also no longer has a traditional HQ.
And what will Mr. Miller do, following his Carousel exit and the sale of his shares? He intends to continue his role as an active board member in various other companies such as Zencargo (since
2019), supporting equity funds such as HV Capital, the former HV Holzbrinck Ventures. And he is already in preparation for some new assignments, as a growing number of funds invest in logistics
tech companies.
“My passion is to work with and support entrepreneurial, highly customer-focused teams in developing, structuring, and scaling their growth activities,” he says.
After leaving Carousel, Franz-Joseph should have more time to indulge in this devotion.
Heiner Siegmund
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