Exel, the global leader in supply chain management, today announced its acquisition of the logistics business of Bodenor S.A. of Santiago (Bodenor), one of Chile’s top domestic third-party logistics services providers.

Whilst financially this is a small acquisition (net assets acquired are less than US$1 million), strategically it enables Exel to expand relationships with key customers and further develop its business in the South Cone region (Brazil, Argentina and Chile).

Bodenor provides dedicated and shared-user warehousing services from two facilities in metropolitan Santiago to more than 40 customers. Since 2002, Exel has operated a warehouse and freestanding aerosol storage facility in Santiago on behalf of SC Johnson.

John Allan, Chief Executive, Exel, said, “As a smaller market, Chile often represents a logistics challenge because few companies have the sales volume needed to support a dedicated solution. Therefore, they seek shared-user solutions that can create the economies of scale required to achieve a competitive logistics solution. Now, international companies can concentrate their business with a single partner capable of managing their respective supply chains across Latin America.”

Exel’s South Cone customers, especially in the consumer and healthcare sectors, increasingly require a regional solution merging global strength with local market knowledge.

“This strategic move complements our existing distribution network by building upon the infrastructure of regional distribution centers and merge-docks Exel has implemented in Brazil,” said Humberto Florez, Exel’s Senior Vice President, Contract Logistics, Latin America. “Also, Bodenor’s presence in Chile enables Exel to provide valuable transportation management services in the country by allowing freight consolidation from the same facility to common customer destinations.”