Allcargo Belgium NV, a wholly owned subsidiary of Allcargo Logistics, has entered into a share-purchase agreement to acquire 75 percent stake in Fair Trade GmbH Schiffahrt, Handel und Logistik.
The all-cash acquisition will be done for 12 million Euros, subject to finalisation of accounts on the day of closing. Share purchase agreement for the same was executed on November 23, while the shareholders agreement will be executed within the next 30-60 days.
Fair Trade GmbH Schiffahrt, Handel und Logistik is a consolidation service provider in Full Cargo Load and Less-Than Container Load (FCL & LCL) operating in the German cities of Bremen and Hamburg. It handles inbound and outbound freight to and from multiple global destinations.
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.
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.
First Published: Nov 25, 2022 9:20 AM IST
