Economic Zones World (EZW) joins forces with Gazeley Limited
Acquisition of Wal-Mart owned logistics space developer to support global expansion
Economic Zones World (EZW), a Dubai World company, has announced the acquisition of Gazeley Limited, the Wal-Mart-owned global provider of sustainable logistics space, as part of its strategy to expand into global markets and deliver a robust global platform to support the dynamic and complex supply chains of its customers. The price was not disclosed.
EZW is a large and growing operator and developer of ‘economic zones’ globally. It developed and operates the 48 sq km Jebel Ali Free Zone of integrated logistics and distribution facilities adjacent to Jebel Ali Port in Dubai. To date, Gazeley has created more than 60 million sq ft (5.6 million sq m) of modern, cost-effective, high-quality logistics warehouse space.
EZW has acquired Gazeley to further expand its collective reach into international markets. Gazeley will provide EZW with successful and established operations in the UK and Europe, as well as additional growth opportunities in emerging markets including China, India and Mexico. Gazeley also brings proven management expertise into EZW.
The acquisition was driven by EZW’s customer-centric strategy for global growth and the company’s desire to strengthen its penetration of global markets through Gazeley’s complementary fit.
Sultan Ahmed Bin Sulayem, Chairman of Dubai World, said:
“This is an outstanding acquisition for EZW and a milestone in our global expansion strategy. It will ensure a leap in the qualitative services provided to our customers worldwide, thus enhancing our position as a strong and effective global business partner.”
Jamal Majid Bin Thaniah, Group CEO of Port & Free Zone World, of which EZW is a part, said:
“Gazeley’s established international platform, proven development capabilities, long-standing customer relationships and strong management team will bring strategic benefits to Economic Zones World. The acquisition gives us a springboard into new markets and, as we continue to grow the business, we anticipate that the deal will strengthen the speed and success of our expansion plans.”
Ms Salma Hareb, Group Chief Executive Officer of Economic Zones World, said:
“We are growing our business to respond to our customers’ needs for better integrated and more effective supply chain solutions. Our capability as a developer and operator of economic zones fits naturally with Gazeley’s experience in developing distribution facilities and together we believe we can offer our customers a higher quality of service globally.”
EZW intends to leverage existing relationships within the group to explore new markets and regions, further supporting EZW’s overall commitment to expand globally and to deliver a robust global platform to support and enhance the supply chains of international customers.
Pat McGillycuddy, Chief Executive Officer of Gazeley, said:
“Gazeley has established an excellent global reputation within the market and, through the efforts and skill of a highly-proficient team, has gone from strength to strength. Linking our future together with Economic Zones World is an excellent opportunity for our customers globally. We will benefit from the backing and ambition that Economic Zones World brings and, at the same time, we can add significant value to Economic Zones World’s existing base of more than 6,000 global customers. We expect this move will unlock even greater opportunities for our combined customer base and accelerate our plans for continued global expansion. This is good for our people and good for our customers.”
Gazeley’s customers include many of the world’s largest companies, third-party logistics providers, manufacturers, retailers and their suppliers. Gazeley is also a preferred developer of distribution space for Wal-Mart International, including Asda in the UK and Wal-Mart.
An integration team will determine the best approach for combining the two businesses while retaining and developing the current and highly successful management teams. The partnership will see all existing employees retained as EZW seeks to expand and grow its operations globally and to capitalise on the skills and experience brought by the Gazeley team.
The transaction is subject to the receipt of European regulatory approval and is expected to complete during July. EZW was advised by a top team of professional advisers, led by Deutsche Bank and including Linklaters, KPMG, CBRE and WSP. UBS was financial adviser to Wal-Mart.
