It has been rumored for months. Now it is a certainty: Vienna, Austria-based logistics agent, cargo-partner, will become a member of the Japanese Nippon Express Group (NX Group). Both parties signed the contract today (12MAY23).
The deal is still subject to regulatory anti-trust approval and will come into effect in an estimated four to seven months, along with the subsequent closing. “Leadership by agile founders
bears some considerable advantages, but from a certain stage on, highly professional and long-term stable ownership is the bigger asset. It is the founder’s challenge and responsibility to decide
about both management and ownership succession at the right time. Not too early to be able to build a stable internal management succession but, for sure, also not too late,” Stefan Krauter,
Founder and CEO of cargo-partner, said following the inking of the documents.
Going it alone was only the second best option
He indicated that going it alone and relying on one’s own forces was a serious option considered by him and the entire management. However, becoming part of the NX Group seemed to be the better solution and the right way to go forward. In view of the acquisition and integration policy practiced by the NX Group so far, “cargo-partner will remain cargo-partner in regard to both organization and branding – and it will become the strongest cargo-partner ever!” stated Mr. Krauter.
Strong Central and East European network enlarges NX Group’s reach
The executive added to this that both companies will benefit from considerable synergies in global office coverage, an expanded service portfolio, strengthened regional, product, and IT know-how, and other business activities. He expressed his conviction that the integration of cargo-partner into the NX Group will be of advantage to both sides thanks to cargo-partner’s strong and established network. The company’s focus on Central and Eastern Europe will become a door opener for Nippon Express. Conversely, cargo-partner will strengthen its presence and business activities on Intra-Asian and Trans-Pacific trade lanes, the traditional stronghold of the Nippon Express Group. Krauter adds: “cargo-partner will also continue to work with its current global agents’ network, strive to expand this section of its business, and support it in future with its upgraded platform which is presently under development.”
Krauter in a changed role
The manager stressed that he will support the transition in his new role as member of the Corporate Supervisory Board coupled with an advisory function to the Corporate Executive Board. In fiscal 2020, cargo-partner’s turnover exceeded the billion-euro mark for the first time since the founding of the company, 40 years ago. In 2021, sales increased by 72%, reaching over €1.8 billion, jumping to €2.06 billion in 2022.
Following months of negotiation and evaluation, the Nippon Express management concluded that integrating cargo-partner into its own group would further strengthen its global forwarding activities through synergies and, by leveraging the competitive strengths of each company, create an even more active sales and marketing operation.
“We believe we can capture new growth areas through the addition of cargo-partner to our group,” states the Japanese enterprise in a reaction to the acquisition.
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