French contract logistics powerhouse ID Logistics buys Florida firm for $15 million
Acquiring Jagged Peak provides North American footprint, expands services for major client Nespresso.
European contract logistics provider ID Logistics has acquired the Florida-based e-commerce specialist Jagged Peak for $15 million, saying the move lets the French firm establish a toehold in the North American market and provide expanded service for its customer Nespresso, the Swiss coffee giant owned by Nestle.
Located in Orgon, France, just north of Marseille on the country's Mediterranean coast, ID Logistics posted revenue of $1.5 billion in 2018, operating out of more than 300 sites across 18 countries. Its clients include a mix of retail, industry, detail picking, healthcare, and e-commerce sectors.
Although Tampa, Florida-based Jagged Peak is much smaller, with sales revenue of $80 million in 2018, it shares an important client with its new corporate parent. According to ID Logistics, a "significant part" of Jagged Peak's revenue is generated with Nespresso for its business to business (B2B) and business to consumer (B2C) activities.
Specifically, Jagged Peak offers an integrated management tool which includes modules from OMS (order management system), WMS (warehouse management system), and TMS (transport management system) technologies, allowing its e-commerce clients to quickly distribute their products throughout North America, the firm says.
"This acquisition represents an exceptional strategic opportunity to extend the Group's geographical footprint to a new continent," ID Logistics Chairman and CEO Eric Hémar said in a release. "Beyond the American market, a country with very strong potential for our activity, this operation demonstrates the confidence and satisfaction of Nespresso, one of our long-standing customers who entrusts us with the management of its logistics flows in the United States."
Jagged Peak is owned by Singapore Post Ltd., a postal and logistics service provider that is an arm of the Chinese e-commerce giant Alibaba Group. The deal is expected to close before the end of 2019, pending approval by American authorities.
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