Thursday, April 1, 2010

Overseas Group and Global Express Services Announce Merger

Two self-described "mid-major" freight forwarders, Overseas Group and Global Express Services, have announced a merger of the two firms.

Commemorated at a signing ceremony in Hong Kong nearly two weeks ago, the two privately held firms publicly announced the merger Tuesday.

Freight forwarder Overseas Group is unrelated to international bulk carrier Overseas Shipholding Group, more commonly known as OSG.

Following the merger transition, both firms will maintain their individual management teams, while Globe Express Chairman and CEO Ziad Korban will serve as the merged firm's CEO and Global Express President-The Americas will retain his title on the merged firm's executive team.

The names of other members of the merged firm's executive team were not released.

Gilbert Khoury, President of Overseas Group, said, “very little overlap exists within our companies, each with its own unique areas of expertise both in terms of business segments and trade lanes served, along with geographic presence. Leveraging these non-competing strengths will enable the combined company to rapidly build size and scale, expand its corporate network and thus better serve its clients.”

Overseas Group has focused primarily on American exports to Europe and the Middle East, while Globe Express has focused primarily on Asian imports to the United States.

The newly merged firm is currently working to streamline back office operations, develop a mutual corporate identity, and maintain consistency in service during the merger.

Financial terms of the deal were not released, and based on statements issued by Global Express, it is unclear if the merged firm will eventually operate under a new name.