Cargo and freight carrier, Simon National Carriers, is now part of a major Japanese group.
Senko Group, a multinational that provides logistics services, warehousing, cargo handling and other supply chain management services, last year acquired a majority stake in Simon National Carriers.
The two companies have entered into an agreement in which Senko acquired 75 per cent of shares with Simon family interests retaining 25 per cent.
Though the announcement wasn’t widely broadcast at the time by Simon National Carriers, the Brisbane-based business duly informed its customers and OEM partners.
“We put a lot of effort into selecting the perfect partner we felt was the right fit for our business, that had the right approach with their acquisitions. Certainly to date it’s been everything that we’ve expected,” said Simon National Carriers CEO, David Simon.
“We deliberately didn’t make a big thing of it at the time,” he told Prime Mover.
“Nothing has changed really, aside from the change in financial shareholders. Management continues as is and our customers continue.”
Simon said they have looked at the additional services the business might offer under the arrangement and where synergies existed between it and other Senko businesses such as international freight forwarding.
Senko Group, which has over 200 companies in its portfolio, maintains a strong presence in air freight and is active in other parts of Asia, Europe and the US.
“It’s probably as much about additional services at this point,” said Simon.
That ultimately wasn’t the predominant reason behind the acquisition according to Simon.
“There was always a view with our customer base, where we would come under pressure from international players and having an international partner would be sensible for the business,” said Simon.
“It’s an ongoing risk to any Australian logistics provider who is predominantly exposed to international customers.
“Most of our customer base is multinational and there’s other international suppliers knocking on their doors in other parts of the world constantly. and w We fend off those generally.
“It’s always been a known risk that we’ve seen.
“When a risk like that comes along our reputation and service levels and our relationships and quality of service delivery has always stood us well including when Senko was knocking on the door of a one of our customers a decade or so ago.”
Senko said Simon National Carriers had offered high-quality logistics services with a proven track record serving Japanese companies and major global corporations.
In a statement Senko said it would focus on further expanding business by leveraging the know-how and networking capabilities that Simon National Carriers possessed with heavy and specialised cargo transportation.
“The Senko Group will also be looking to secure new customers, not only in Australia but on a global scale, by harnessing its forwarding know-how,” the company said.
Since the acquisition Simon National Carriers have been active on the fleet front continuing to make upgrades to its key assets.
Just prior to Christmas the business added five new Mercedes-Benz Actros prime movers, while another six Scanias were deployed in recent weeks.
One each of a Volvo FE Electric and FL Electric are presently having new bodies built, with fabrication and fitment almost complete.
These, their first battery electric trucks, will join the fleet in the next couple of weeks.
They will be joined by half a dozen new Fuso Canters that are also having bodies manufactured.
While Simon said the arrangement with Senko Group helped to provide additional growth and capital for the business, it was important for its customers and staff that it was very much a case of business as usual, and it has been.
“It’s an investment for Senko and they’re a very supportive shareholder” said Simon.
“Senko were the right choice for us.”
In other news, an American investment firm has agreed to a majority-share acquisition of an Australian family-owned fuel and logistics provider.
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