BAX Global Sold

[DC-8_FR8]

BERLIN, Nov 7 (Reuters) - Germany's national rail operator Deutsche Bahn [DBN.UL] plans to buy U.S. logistics firm BAX Global, a unit of security and logistics company Brink's Co. (BCO.N: Quote, Profile, Research), for up to 1 billion euros ($1.2 billion), sources at Deutsche Bahn said on Monday. "The price is to be between 800 million and 1 billion euros," said one source familiar with the negotiations. This was also confirmed by another source at Deutsche Bahn.
Deutsche Bahn declined to comment.
By buying BAX, Deutsche Bahn may hope to raise its competitiveness in the U.S. market by strengthening its logistics arm, Schenker.
BAX would boost Schenker's air and sea transport capabilities from the United States to Europe and Asia, thereby increasing pressure on rivals on such as Deutsche Post (DPWGn.DE: Quote, Profile, Research) and Kuehne & Nagel (KNIN.S: Quote, Profile, Research).
With some 12,000 employees, BAX Global had a turnover of around 2 billion euros in 2004.
The purchase is to be concluded by a special meeting of Deutsche Bahn's supervisory board on Saturday, the sources said.
The Wall Street Journal reported in June that Brink's had put BAX, which is based in Irvine, Calif., up for sale. The paper said at the time that the unit could fetch roughly $500 million based on historic price multiples for logistics and trucking companies.


© Reuters 2005. All Rights Reserved.

 

[Andy Neill]

Anybody at BAX know how the sequence of cities to be flown to by each aircraft in the monthly schedule is derived? That is, is there a software package that optimizes the schedule or is it just years of human experience involved?

 

[B767Inst]

When DHL bought Airborne Express, the airline was spun off as a separate company, ABX Air, due to legal reasons. Any word on the fate of ATI?

 

[canadflyau]

Toledo newspaper

Article published Tuesday, November 8, 2005

Germany's national rail firm plans to acquire BAX Global

FROM BLADE STAFF AND WIRE REPORTS

Germany's national rail operator, Deutsche Bahn, plans to buy U.S. logistics firm BAX Global, which has its sole U.S. air hub at Toledo Express Airport.

The purchase could be for up to $1.2 billion, sources at Deutsche Bahn told Reuters yesterday.

Deutsche Bahn declined to comment, as did officials at Brink's Co., which owns BAX.

It is too soon to know what the purchase might mean to Toledo, said James Hartung, president of the Toledo-Lucas County Port Authority, which owns Toledo Express. BAX has at least 19 flights a night Monday through Thursday, a number that has gone up in recent months. The hub has about 1,000 employees.

Buying BAX would help Deutsche Bahn increase its competitiveness in the U.S. market and strengthen its logistics arm, Schenker.

BAX, which is based in Irvine, Calif., has about 12,000 employees. It moves heavy cargo around the world, through a network of 500 offices in 133 countries, using its own 18-plane air fleet as well as trucks and ships under contract.

The unit is a corporate descendant of the Burlington Northern railroad, and got its BAX Global name in 1997.

It had sales last year of $2.4 billion but has struggled to turn a profit, delivering just $56 million in operating profit in 2004 and a combined $21 million in profit in the two years previous.

The purchase is to be concluded at a special meeting of Deutsche Bahn's supervisory board Saturday, the sources said.

The Wall Street Journal reported in June that Brink's had put BAX up for sale, a move that allow Brink's to focus more on its home-security division, the second largest in the United States.

Shares of Brink's climbed yesterday, as high as $47.39, surpassing the 52-week high of $42.85 reached last week. The stock closed at $46.71 a share, up $4.21 for the day, on the New York Stock Exchange.

 

[canadflyau]

Planes in the sale?

BAX, which is based in Irvine, Calif., has about 12,000 employees. It moves heavy cargo around the world, through a network of 500 offices in 133 countries, using its own 18-plane air fleet as well as trucks and ships under contract.

 

[Andy Neill]

On the Brinks website, ATI is listed on the BAX Global page
http://www.brinkscompany.com/operatingcompanies/baxglobal.html

and not directly under Brinks.
http://www.brinkscompany.com/

Further, on BCO's financial reports, it lays out the financial performance for Brinks, Brinks Home Security, and BAX Global but does not set out any info on ATI.

 

[DC-8_FR8]

Of course you won't find any info on ATI. It's a big secret. Oh great, I've said too much. The black helicopters are going to get me.

 

[DC8-PFE]

OK I'm one of those guys at ATI, First off,we are not that secret. Just small. To answer some of the previous questions. We are not sure where we stand in the corporate scheme of things. During our last union contract negotiations, we were told that weare not part of BAX. But yet every time we see some blurb about BAX it includes that line about Bax's fleet of 18 aircraft. I can say that we are treated just like every other contractor on the TOL ramp. Now the other question about how BAX schedules its freight runs? A computer program? You must be joking!!!!! It seems to be a hit and miss situation. If FEDEX or UPS ever saw how BAX runs the TOL opertion they would laugh themselves into tears. Personally with this proposed sale, I don't think the new owners will keep the domestic air freight going. Why would they? It barely makes any money. I just hope ATI can keep on going, Because it really is one of the best things around. Now where would anybody get the idea that we are a secret? Just because the president of the company is a retired airforce brigadier general? who was a special ops guy? Just because we go to some rather exotic locations like Thule, Greenland, Diego Garcia, Ascencion Island etc,etc,etc on a regular scheduled basis. Or is it the other crap into the deepest heart of africa? Personally lately I've been hauling a lot og race horses and research monkeys. BTW you have never smelled anything like 1500 monkeys crammed into the back of a flying metal tube for 12 hours plus!!!!!

 

[DC-8_FR8]

By Markus Wacket
BERLIN (Reuters) - The supervisory board of German rail operator Deutsche Bahn has approved the planned takeover of logistics company BAX Global, a unit of U.S. security firm Brink's, a Deutsche Bahn source said on Saturday.
Sources close to the deal told Reuters on Wednesday that the companies had agreed in exclusive talks on an acquisition price of $1.12 billion. Following the board approval, they are expected to sign a formal purchase agreement on Tuesday.
The companies have declined to comment on the deal.
Buying the Irvine, Calif.-based BAX, which has about 12,000 staff and posted sales last year of $2.4 billion, would boost Deutsche Bahn's U.S. competitiveness and strengthen its logistics arm, Schenker, by adding air and sea transport from the United States to Europe and Asia.
Heavy freight specialist BAX Global arranges for the delivery of overnight and second-day freight from one business to another in more than 130 countries.
It uses its own aircraft in North America and employs other carriers elsewhere. BAX also offers supply chain management services.
A Deutsche Bahn source said this week the company's Chief Executive Hartmut Mehdorn had held a meeting on the BAX purchase with outgoing German Chancellor Gerhard Schroeder and Wolfgang Tiefensee, who is slated to become transport minister in a new government.
The government-owned rail operator had net debt of 19.5 billion euros at the end of 2004 and some politicians have openly questioned whether the BAX acquisition is a wise move.
Shares in Brink's, known for its armored car and home security business, surged 10 percent on Monday after Reuters reported that Deutsche Bahn was prepared to pay up to 1 billion euros for BAX.
Top Brink's shareholder MMI Investments LP, a New York-based hedge fund, has been urging the company to divest BAX, arguing that a sale would make the security firm more attractive to investors.
Following the supervisory board meeting on Saturday, Deutsche Bahn issued a statement saying that its performance in the first nine months of the year showed it was on track to reach its 2005 earnings target of 400 million euros after interest.
It had earned 250 million euros in full-year 2004.
"The company is fully on course. We will stick to our plans," Mehdorn said in the statement.
Deutsche Bahn said its nine-month result had improved by almost 200 million euros.
It had made a loss of 54 million euros in the same period of 2004.
The supervisory board also agreed to sell the Deutsche Bahn's advertising unit DERG to Stroeer Out-of-Home Media AG, the statement said, without giving financial details.
Industry sources had said that Stoeer bid about 100 million euros for the business, beating French rival JC Decaux.

 

[sleepy]

The best thing to ever happen to me in my flying career was being furloughed by ATI.