German rail giant Deutsche Bahn has agreed to acquire the US logistics firm BAX Global, whose businesses include air freight transportation, for $1.1 billion.BAX Global, located in Irvine, California, is one of three operating units of the Virginia-based business and security company Brink’s, and employs about 12,000 personnel.
Its air transport services are operated by sister company Air Transport International, another Brink’s subsidiary, which has its main hub in Toledo. Air Transport International is being sold to US company Cargo Holdings International to facilitate the sale.
Peter Fox, Cargo Holdings chairman, president and chief executive, says the sale of Air Transport International to Cargo Holdings is “going to happen simultaneously” with the sale of BAX to Deutsche Bahn.
The deal includes 18 McDonnell Douglas DC-8s operated by Air Transport International. Financial terms are not being disclosed.
Confirming that Deutsche Bahn will not become the temporary owner of Air Transport International during the transaction, Fox says the carrier “will never be owned by a European entity”.
Michael Dan, Brink’s chairman, president and chief executive, also stressed that distinction during a conference call to discuss the BAX sale, noting that the law prohibits a foreign-based purchaser owning a US airline.
Cargo Holdings was formed in 1999 and owns Orlando, Florida-based Capital Cargo International.
The main deal involves Deutsche Bahn taking the entire share capital of BAX Global. The German rail firm has annual revenues of €24 billion ($28 billion) – about 12 times that of BAX Global – and a logistics operation with revenues of €11.6 billion.
Deutsche Bahn board chairman Hartmut Mehdorn says: “BAX fits our strategy precisely and complements our own logistics daughter company.
“With these two companies Deutsche Bahn is now one of the most prominent transport and logistics businesses worldwide.”
The rail firm says that it will develop its position in the air freight sector as a result of the agreement, building on its present position as fifth in the world in terms of market share.
Brink’s says the sale will enable the US company to concentrate entirely on its security-related services. It plans to use the $900 million proceeds from the sale to reduce debt and repurchase shares.
Source: Flight Daily News
