COMPANY DESCRIPTION
AGV Logística (AGV) is a leading third party logistics provider (3PL) servicing over 200 global and domestic clients such as Unilever, Pfizer, Bayer, Nivea and Itaú. AGV offers complete supply chain solutions including warehousing, transportation, cold storage, inventory control, and other value added services that are increasingly required as Brazil’s economy develops and expands. Based in a 60,000-square-meter state-of-the-art distribution facility outside São Paulo, AGV operates more than 60 branches in 13 Brazilian states and makes over 1 million deliveries in 4,100 municipalities representing nearly 95% of Brazilian GDP.

MARKET OVERVIEW
Consistently strong GDP growth in Brazil is resulting in significant corporate expansion and increased investment in logistics where efficiency and reliability is a critical competitive advantage. A recent study revealed that 48% of companies surveyed intended to outsource their logistics needs and another 36% were considering outsourcing. Compared to the U.S., logistics in Brazil remains inefficient. For example, transportation costs in Brazil are estimated at 13% of GDP versus 8% in the US. Additionally, the logistics sector is extremely fragmented with the top 10 players accounting for approximately 20% of the total market (in the U.S. the figure is closer to 50%), which is driving consolidation activity as 3PLs seek economies of scale.