4/12/2008

GEODIS ACQUIRES IBM’S GLOBAL LOGISTICS FLOW MANAGEMENT PLATFORM AND SIGNS THE WORLD’S BIGGEST LOGISTICS CONTRACT

With this first of a kind logistics contract, Geodis is achieving a major leap in its strategy to expand globally by leveraging IBM’s established logistics footprint in more than 50 countries and its renowned operational expertise

Today, Geodis’ leading entity of SNCF Transport and logistics division, the 4th largest European transport and logistics supplier, acquired IBM’s internal global logistics operations in an all-cash deal for an undisclosed amount and signed a multi year outsourcing contract.
Through this contract, Geodis will be the sole lead logistics provider for IBM, managing approximately 1.0 billion Euros per year of IBM’s logistics costs supporting asset recovery services, service parts logistics and flow management of all hardware and software products worldwide.
The logistics provider industry is becoming more global, more concentrated, and segmented around customer types and universally better at execution. To cope, this industry has been evolving to offer greater scope and more complex solutions*. In this context, since 2007, Geodis has implemented a strategy of moving from a European multi services company to a worldwide logistics provider reinforcing its network in the Americas and in rapidly expanding countries such as China, India, and Russia. Today’s acquisition of IBM’s global logistics services and its world-class global network and treasure trove of skills, expertise and best practices will provide Geodis and its customers’ with an immediate access to a worldwide supply chain platform able to design, manage and execute customer solutions.
"This agreement is strategic to reinforce Geodis’ position among the world leading logistics providers capable of delivering end to end solutions to its global clients. With this partnership, we will strengthen the skills and expertise required to service, both IBM’s and our existing and future client’s, core logistics needs in more than 120 countries. IBM’s global logistics operations will significantly upgrade our services portfolio,” said Jean-Louis Demeulenaere, Geodis deputy CEO.
"IBM has long emphasized to its own clients that in a globally integrated enterprise, companies create more value by focusing on critical areas that provide differentiation, while they seek partnerships for non-core activities. This agreement with Geodis underscores this strategy,” said Gary S. Smith, vice president, global logistics, IBM Integrated Supply Chain. “All of the work that has been done by IBM to develop and integrate its supply chain across all of its businesses, provides us with an excellent opportunity to partner with a world class logistics company and leverage our joint resources on behalf of our many global clients. We are excited about this relationship as it will benefit not only our clients but our employees. Geodis has a passion for this business and they will provide both our clients and our employees with ongoing investment, innovation and growth.”

Transport and Logistics Division Geodis is increasing its investments outside Europe and this acquisition complements the company’s existing teams. By leveraging IBM’s employees in more than 50 countries across the United States, Canada, Latin America, Europe and Asia Pacific, Geodis’ service offering will be enhanced with multinational supply chain experts and an established worldwide platform to enable rapid growth and expansion
The transaction is expected to close in first quarter 2009, and it is subject to the expiration or the early termination of the waiting period under the HSR Act and the issuance by the European Commission of a decision declaring the transaction compatible with the EC Common Market as well as to applicable regulatory clearance, local agreements and appropriate and required employee information and consultation processes.
* According to IBM’s Institute of Business Value Study called, Building value in logistics outsourcing: The future of the logistics, 2007

About the SNCF’s Transport and Logistics Division SNCF’s Transport and Logistics Division provides a global multimodal offering and end-to-end flow management solutions for its customers worldwide. Through a network covering 120 countries, the division’s multicultural workforce offers a highly flexible and responsive service offer. The Transport and Logistics Division is the fourth-largest transport and logistics operator in Europe, with revenue of 8.5 billion Euros. Key Figures: Revenue: 8.5 billion Euros 50,000 employees Network covering 120 countries