US consulting giant Bain & Co revealed it has snapped up London procurement specialist Proxima today, as demand for supply chain consultancy surges amid a wave of inflationary and geopolitical shocks.
Bain & Co, headquartered in Boston, said today it had bought Proxima in what was a “critical moment for the procurement sector”, with a combination of geopolitical tensions, rising costs and the impact of the pandemic snarling supply chains globally.
Both firms declined to disclose the value of the deal, but the terms of the tie-up will see Proxima continue to operate independently as part of Bain’s ‘specialist procurement implementation service line’.
Bosses at Bain said told City A.M. the need for supply chain expertise had soared against the current economic backdrop.
“Discussions between Bain & Company and Proxima began in 2021 in the midst of pandemic disruptions to supply chains,” said Michael Garstka, London-based Bain & Company Senior Partner, told City A.M.
“In response to our clients’ increasing challenges in supply chain and procurement strategy and execution, Bain & Company has been investing to deepen and expand our capabilities in these areas, and we have increased our support to clients on these critical topics during the pandemic period, and as inflation and geopolitical turbulence have presented further challenges.”
The acquisition comes as firms scramble to drive down the environmental and social impact of their supply chains, with scrutiny growing of so-called Scope 3 emissions – those that take place across supply chains and firms’ customer base.
Bosses at Bain said today that procurement would be crucial to delivering “growth while also meeting their net zero agendas.”
“We believe this acquisition will further strengthen our ability to meet the needs of clients around the globe for end-to-end procurement transformation across strategy, design, technology, capability development, and execution,” the firm said.
Proxima, which delivers procurement and supply chain consultancy across sectors as diverse as aviation, banking and government, said the deal would allow its offering to hit “even greater heights”.