Dublin-based transport and logistics group Walsh Western International has acquired US player TDS Logistics for $400 million (€309.3 million) in an effort to gain market share in the US and China.
Based in Atlanta, TDS provides specialist services to clients such as BMW, DaimlerChrysler, Ford, General Motors and Volkswagen. The Irish group bought out the business from Yucaipa Companies, a well-known Los Angeles private equity fund which includes former US president Bill Clinton among its advisers.
Controlled by the family of chief executive Brian Enright, Walsh Western is funding the deal with bank debt from an unspecified source. Mr Enright said yesterday that the group might seek a stock market listing in the medium term. "We haven't any firm plans around that," he said.
Industry sources said the deal valued TDS at $400 million. Yucaipa acquired TDS in 2004 for a sum "lower than" $300 million. The transaction will enable the Irish group, which does business mainly in the IT and electronic sectors in European markets, to rapidly increase its international footprint through the TDS network in the US, Asia and South America.
In particular, Mr Enright wants to carve out market share in the US and China for Walsh Western. The Irish business had annual revenues of some $300 million in 2006 and 2,000 staff. It is acquiring a much larger organisation, with revenues of some $400 million and 7,000 staff.
Walsh Western has expanded rapidly since coming under the direct control of Mr Enright in 2000. The group had sales of some €38 million in 1999, according to Mr Enright. Its most recent published accounts show pretax profits of €5.97 million in 2004 on sales of €107.97 million.
Walsh Western converted from a limited liability company to unlimited liability company last year. As a result it does not have to file accounts with the companies office.
Mr Enright said the TDS transaction reflected his intention to build "a multinational highly specialised company on a global scale". While the group has made small acquisitions in the past, the latest deal marks an end to Walsh Western's concentration on organic growth.
Mr Enright said he had further acquisitions in mind as he strives to broaden the scope and scale of the business.
Walsh Western and TDS will immediately begin a merger process. "Both companies see the merger as providing the potential of significant revenue synergies," a joint statement said.
"This acquisition is a merging of skills which will result in Walsh Western being better equipped to service our existing client base and offer that high standard on a global scale," said the Walsh Western chairman Michael Enright, father of Brian Enright.
"The combined entity is committed to further enhancing its global logistics service offerings to existing as well as new customers," said the TDS chief executive Jos Opdeweegh.
