IBM Sells Hi-Tech Logistics Stake to Tibbett & Britten

PARIS — IBM sold its 40% shareholding in Hi-Tech Logistics Ltd. to the Britain-based international transport and logistics firm Tibbett & Britten.

At the same time, IBM signed a multimillion dollar contract with T&B for the outsourcing of its distribution and logistics activities in Great Britain and Northern Ireland.

Hi-Tech Logistics was a joint venture between IBM and T&B, which have been working in partnership since 1986. Hi-Tech Logistics, which has handled physical distribution for IBM since 1994, will be wholly integrated into T&B.

The agreement is seen as a key step in IBM's strategy of outsourcing its physical distribution activities to logistics service providers.

"The strategy is to manage the processes of physical distribution and logistics ourselves, while relying on strategic partners to provide the actual services," said Bertand Augere, director of distribution for IBM Europe, the Middle East and Africa.

Under the five-year contract, T&B will provide import, distribution, delivery and added-value services, plus worldwide export of parts and finished goods made in Britain.

North America is T&B's second largest market behind Great Britain. In the first half of 1998, T&B's revenues in the U.S. and Canada increased 23% to $264 million. Worldwide, the company had revenues of $889 million, and profits of $19.3 million through the first six months of this year.