Allcargo Logistics to acquire 75% stake in German logistics provider for 12 million Euros

The target company had a turnover of nearly 44 million Euros in the calendar year 2021. The acquisition will help Allcargo expand its presence in the FCL and LCL market in Germany.

This is Allcargo's third acquisition within the freight business space after the company acquired Speedy Multimodes in September last year for Rs 102 crore and a Joint Venture with the Nordicon Group for Rs 210 crore.

Allcargo Logistics' net profit was hurt by higher tax expenses during the September quarter.

The company has laid out its plans till 2025 (FY26) and it expects its revenue to be at Rs 25,000-30,000 crore while the earnings before interest, taxes, and depreciation (EBITDA) - a key metric to measure a company’s financial health and ability to generate cash flow - is targeted between Rs 2,400-2,700 crore.

For the near term, the management believes that the rising freight rates have now been controlled.

Chief Strategy Officer Ravi Jakhar told CNBC-TV18 in an interaction that the company doesn't see the need for a big acquisition now but may continue to explore strategic opportunities in specific countries.

Shares of Allcargo Logistics have opened 1.3 percent higher at Rs 469.45.