Ocean Group, NFC Explore Merger
Ocean Group plc and NFC plc are exploring “a merger of equals” that would create one of the world’s largest providers of integrated logistics services.
Exel Logistics, a subsidiary of NFC, has a significant presence in the U.S., providing logistics services to the automotive, electronics, chemicals, consumer and retail sectors. The company also owns Merchants Home Delivery Service of Oxnard, Calif., a company that delivers furniture and appliances, and has recently integrated its service with Exel to provide home delivery for Internet-based retailers.
Ocean Group is the parent of MSAS Global Logistics, a worldwide freight forwarding organization that provides services primarily to the technology, health care and fashion industries. MSAS significantly expanded its business in North America with the acquisition of Mark VII Inc., an intermodal marketing company in Memphis, Tenn., in July.
The combination, to be known as Exel plc, would rank No. 2 in sales behind Germany’s Deutsche Post with annual gross revenue of $5.6 billion.
NFC last year sold its worldwide household goods moving business to North American Van Lines for $450 million, retaining a 23% stake in the business, which is now called Allied Worldwide.
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