PIL buy give SGL even stronger local presence

Date: 16.01.2020

Danish global firm in second Australian acquisition in 18 months

Rob Erskine and Søren Madsen

Scan Global Logistics (SGL) acquires smaller Australian rival Pioneer International Logistics (PIL), strengthening its footprint in this country.

SGL, which has offices in Melbourne, Sydney and Perth sees Sydney-headquartered PIL as uniquely positioned in the Australian market with a “strong market presence, proven business model and impressive growth since inception in 2010”.

The freight services and supply chain management firm underlines that acquisition of PIL, its second acquisition in 18 months, is a “very important step forward, strengthening Scan Global Logistics Australia and the organisation more broadly”.

“Scan Global Logistics has been present in Australia since 1998, and in 2018 initiated an ambitious expansion into the Australian logistics market with the acquisition of Kestrel Freight and Customs,” SGL Pacific Region CEO Søren Madsen says.

“With the acquisition of Pioneer International Logistics, we are taking the next step in that plan.

“We have been talking to PIL since early 2019 and we are very pleased to finally be able to welcome PIL to the Scan Global Logistics Australian family.”

Read how FedEx took over Manton, here

SGL Group casts the move as a win-win, with the Danish-headquartered global company strengthening its service offering to Australian and Pacific customers, while PIL customers gain enhanced capabilities including added expertise, technology, network, and e-commerce platform.

PIL’s three co-owners and key management team of will continue with SGL Australia with Rob Erskine to become SGL Australia MD, Rod MacPherson as commercial director and David Cooke as chief operating officer.

“We are very pleased to become a part of Scan Global Logistics, a company with a culture and values that align with ours,” Erskine says.  

“Prior to being approached by SGL in early 2019, we were reviewing our options for future proofing our business so that we would be able to maintain our client relationships and grow market share in a changing competitive landscape.

“We saw that we needed to address the areas of e-commerce, technology, environment and sustainability.

“SGL is able to provide that support with additional financial strength.

“We see joining SGL as a natural evolution for our business which will strengthen our service and capabilities for existing clients and allow us to address a broader market.”

Previous purchase target Kestrel was a full-service freight forwarder that provides logistic support to projects in industries including mining, construction, energy, and telecommunication.

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