Monday, June 4, 2018

Further Freight Forwarding Company Acquisition for Logistics Group

Another Essex Buy Adds to Portfolio
Shipping News Feature
UK – Having made a couple of acquisitions a year or so ago, which included London based EMT Logistics, Xpediator, the group set up by fashion transport specialist Delamode, has continued its purchasing agenda, now picking up one of the best known Essex based freight forwarding groups. It appears to have a penchant for its home county as (apart from collecting Hampshire headquartered Regional Express in 2017) it also bought south Essex firm Benfleet Forwarding last October, and now has added Rainham situated Anglia Forwarding (AFGL) to its swelling portfolio.

The Xpediator board says it expects to enhance its earnings immediately with the latest buy which cost it an initial payment of £1.5 million in cash payable on completion, a further cash payment reflecting AFGL’s surplus working capital position at completion estimated to be approximately £700,000 and a deferred consideration on profits to May 2020 of up to a further £2 million.

The latest buy gives the group a further presence in Birmingham, Felixstowe and Heathrow, and the opportunity to consolidate various aspects of its operations, particularly exports to the Rainham cross dock facility which will be managed in conjunction with Cargo Marketing Services Limited under a joint venture agreement. Stephen Blyth, Xpediator CEO, commented,

“Anglia Forwarding is an exciting addition to the Xpediator Group, which will significantly strengthen our air and sea freight operations as well as add complementary European road routes. From Xpediator’s side, we will be able to offer Anglia’s customers the complete range of our services, especially warehousing and fulfilment which we believe can add significantly to the Anglia business.

“The presence of Anglia’s dedicated air freight office at Heathrow, combined with their longstanding position as global partner to United Shipping since 1988 will be a valuable addition to the Group and will significantly increase our access into the key markets of America and China.

The Group overall is trading in line with market expectations which is pleasing and in operational terms we are successfully integrating our recent acquisitions. We expect to realise the benefits of our cross selling opportunities, particularly at Benfleet where the increasing customs security checks across the EU has affected the development of its Far Eastern business. I am looking forward to integrating Anglia’s services into the business and thereby enhancing the Group’s earnings.”

AFGL generated unaudited revenue of £13.5 million and normalised operating profit in excess of £400k for the year ended 31 July 2017. Senior management and employees of AFGL are to be integrated with the Xpediator group and Peter Tough, CEO of AFGL, will continue as a consultant. He remarked:

“Since its foundation in 1971, Anglia has grown to be a highly successful international forwarder offering a high standard of service to clients. By becoming part of Xpediator Group we will be able to make use of being part of a larger group to expand our business and provide additional services to our existing client base.”