TDS Logistics (part of syncreon)

Note: This company is no longer trading as a separate enterprise.

February TDS Logistics and Walsh Western International agreed to merge to form a new company. However, it is unclear what the nature of that new company will be.

According to a released statement TDS, which had been owned by the American private equity company Yucaipa, had "signed a definitive merger agreement" with Walsh Western. In contrast Walsh Western stated that it had "consolidated its position as one of Europe's leading logistics companies by acquiring TDS Logistics".

TDS was a leading automotive logistics supplier specialising in consolidation and 'line-feed' activities. Over 50% of its business was in Europe although it had operations in North and South America as well. It does much of its business with the 'Big 3' German vehicle manufacturers as well as companies such as Ford.

Walsh Western appeared to be the smaller company, based in the Irish Republic but with operations in the UK, the Netherlands and Germany. It specialised in road freight forwarding, 'fulfilment' for the consumer electronics sector, having a major contract at Dell's PC factory in Limerick as well as providing logistics services to Apple, Epson, HP and the UK electrical retailer Dixons.

The company appeared to be privately owned by the Enright family, Walsh Western being established by the company's present Chairman, Michael Enright. In 1998 the company sold its logistics business to Exel.

The price and terms of the sale was not known. However according to the TDS release Jos Opdeweegh, the present President and CEO of TDS will head the new company.

TDS is almost certainly considerably larger than Walsh Western, with an estimated turnover of US$400m. However the financial details of neither company are known as both are privately owned. It is unknown how TDS has fared under the ownership of Yucaipa, however the automotive logistics sector is a tough one. Walsh Western states that the new company will have turnover of US$700m.

Rumours had been circulating in the US about Walsh Western and TDS coming to some agreement for several months.

The company concentrates exclusively on the automotive sector.  It is more heavily exposed to production logistics rather than transportation and this has been as a deliberate attempt to improve margins. TDS uses the phrase 'materials handling logistics provider' to describe this approach, which is as much aimed at Tier 1 suppliers as VMs.

The business is divided into two divisions:

• TDS automotive logistics
• TDS mro logistics (maintenance, repair, operation).