Logistics and Transportation Research

The most recent transactions in the Logistics and Transportation sector reflect corporate objectives to expand geographic coverage, develop other vertical industry opportunities and broaden logistics capabilities.

Matson Global Distribution Services and Pacific American Services

On September 2, 2008, Matson Global Distribution Services acquired Pacific American Securities LLC from Pacific American Group and First American Corp. (NYSE: FAF).

A leading regional warehousing, packaging and distribution company, Pacific American specializes in the value-added handling of domestic, import and export goods. Based in Oakland, Pacific American has primarily served wines and spirits, food and beverages, organic food products, confectionary and bulk ingredients, paper products, high tech, retail, apparel and consumer packaged goods. Pacific American provides coverage for the entire Northern California distribution network.

First American is a $7.2 billion company that provides business information and related products and services through its insurance, mortgage information, property information and First Advantage business segments. Matson Global Distribution Services is part of Matson Navigation Co., a wholly owned subsidiary of Alexander & Baldwin, Inc. (NASDAQ: ALEX).

Matson Global offers a full supply chain management process, from warehousing to a full range of distribution options.

The Public Warehousing Company and Geopetrol International Ltd. of Canada

On August 28, 2008, Geopetrol International Ltd. of Canada was acquired by The Public Warehousing Company for $8.3 million in cash.

Doing business as Agility, The Public Warehousing Company (KWSE: AGLTY) operates as an integrated logistics company worldwide, including warehousing and distribution services, facilities management, origin cargo management, direct-to-store services, reverse logistics, contract logistics management, employee relocation, vendor-managed inventory services and logistics services related to chemicals. A $6.5 billion company based in Kuwait, the Company also provides logistics to the defense and government sector, and has an investment segment with real estate, private equity and trade facilitation services.

Based in Alberta, Canada, Geopetrol provides oilfield and oversize equipment freight forwarding services. This acquisition appears to be a vertical expansion of Agility’s capabilities in oil & gas and project cargo

CH Robinson and Transera International

In a similar, but larger transaction, on August 1, 2008, CH Robinson Worldwide Inc. (NasdaqGS: CHRW) acquired Transera International Logistics Ltd.

Transera is a $125 million, full service freight forwarding and logistics company, primarily offering turn-key freight solutions for the inland, ocean and air transportation of containerized, breakbulk, hazardous and heavy lift cargoes. Based in Alberta, Canada, Transera serves the oil & gas, windmill and mining markets. Transera’s senior management will continue to operate the business.

With $8.1 billion of revenue, CH Robinson is one of the world’s largest third party logistics companies, with a network of 221 branch offices serving over 29,000 customers. The Transera acquisition appears to give Robinson added expertise in over-sized freight shipping and broadens their network.

BDP International and Seabreeze Argentina

On July 22, 2008, BDP International acquired Seabreeze Argentina S.A.

Seabreeze is an international freight forwarder based in Buenos Aires, Argentina. BDP is a privately-owned freight logistics and transportation company based in Philadelphia, Pennsylvania, with a network of partnerships in 121 countries, serving more than 4,000 customers worldwide. Seabreeze provides BDP with a platform for expansion in Argentina, building upon their presence in Brazil, Chile and Mexico.

Mainfreight and Halford International

Mainfreight Ltd. (NZSE: MFT) exercised its option to acquire Halford International Pty Ltd. for AUD 21 million in cash ($16.03 million) on July 1, 2008.

Halford is a 140-year-old privately-held logistics business in Australia, providing freight management, freight forwarding, customs clearance, warehousing and distribution, as well as local/interstate transport services. Mainfreight, a public company with $600 million of revenue, is a supply chain logistics provider in New Zealand, Australia, Asia and the U.S., specializing in freight that is less than container load. Services include managed warehousing, domestic distribution, metro and wharf cartage and international air and sea freight operations.

The transaction was for 80% of the consideration to be paid at closing and the remaining 20% over a two-year period. For the year ended June 30, 2008 Halford reported EBITDA of AUD 3.5 million. Therefore, the transaction has an implied total multiple of 6 times EBITDA.