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Dubai: South Africa's Barloworld Logistics has bought Dubai-based Swift Freight International for $70 million (Dh257 million), securing logistics operations in a number of Asian and African countries.
Barloworld Logistics chief executive officer Paul Stuiver told Gulf News his company was attracted to Swift's 46 branches in 21 countries and is acquiring the Dubai firm along with its stakes in other companies. Swift employed 700 people.
"This acquisition gives us a strong presence in key countries such as India, China and the UAE. It will increase our revenues by 75 per cent," he said.
By expanding freight services through Swift's network, Barloworld Logistics expects to grow into a major player in a supply chain network stretching from Asian manufacturing hubs to Western European and African consumers.
Eisa Baluch, founder of Swift, will continue to hold his position as chairman and will oversee the company's further expansion, Stuiver said.
Baluch said the deal offered good value for the company he founded in 1989 and built up into a major logistics industry player over the years.
"It is time for a new phase of development for Swift," he said.
The deal gives Barloworld a huge presence in 14 African countries as until now the company's operations were concentrated in the southern part of the continent.
Stuiver said the acquisition is "about growth, not about rationalisation or consolidation" and has ruled out radical change in the way company operates.
"Swift is already a great company with a comprehensive international network. It is perfectly situated to take advantage of Dubai's development as the world's foremost logistics hub," he said.
Swift was among the first companies to reserve space in the upcoming Dubai Logistics City for a logistics centre of 29,000 square metres.
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