TIDMXPD
RNS Number : 1148Q
Xpediator PLC
04 June 2018
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
4 June 2018
Xpediator Plc
("Xpediator" or the "Group")
Acquisition of Anglia Forwarding Group Limited
Xpediator, (AIM: XPD) a leading provider of freight management
services across the UK and Europe, is pleased to announce it has
entered into an agreement to acquire the entire issued share
capital of Anglia Forwarding Group Limited ("AFGL"), a UK-based
international freight forwarder with road, sea and freight
capabilities (the "Acquisition").
The initial cash consideration payable upon completion is GBP1.5
million, plus a further cash payment reflecting AFGL's surplus
working capital position at completion estimated to be
approximately GBP700,000. Deferred cash consideration of up to
GBP2.0 million may also be payable contingent on profits generated
by AFGL over the two years ending 31 May 2020.
The Acquisition is Xpediator's third acquisition since IPO and
the board expects it will be earnings enhancing immediately.
Acquisition highlights
-- AFGL is a complementary acquisition that presents good
cross-selling opportunities and operational synergies
-- AFGL generated unaudited revenue of GBP13.5 million and
normalised operating profit in excess of GBP400k for the year ended
31 July 2017
-- The consideration will be funded from existing resources
-- Based in the UK, AFGL operates domestically and
internationally, with headquarters and warehousing in Rainham,
Essex and branches in Birmingham, Felixstowe, and Heathrow
airport
On completion, the enlarged Group will operate from 10 sites in
the UK together with 11 European offices employing 781 people.
Anglia Forwarding
AFGL is an international freight forwarding and courier business
established over 40 years ago with headquarters in Rainham, Essex.
Through their association with United Shipping Inc, a worldwide
association of agents, the business is able to offer sea and air
freight services to the US, China and Europe. The group also has
well established European road routes.
Peter Tough, Anglia Forwarding Group Limited CEO, said,
"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."
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."
Potential Acquisition Benefits
-- Expansion of the Group's air and sea freight activities
-- Presence at Felixstowe in one of the few, purpose-built
freight, Customs approved, independently owned and operated
terminals in the UK
-- Consolidation of the Group's exports to the Rainham cross
dock facility which will be managed in conjunction with Cargo
Marketing Services Limited under a joint venture agreement
-- Expected synergies through providing warehousing and fulfilment services
-- Well established road routes that are complementary to the existing Group services
-- Peter Tough, CEO of AFGL, will continue as a consultant and
all other senior management and employees of AFGL to be integrated
with the Group,
-- The amount of further consideration is wholly dependent upon
AFGL's profits for the two years ending 31 May 2020
-- Branch office in Birmingham extending the Group's UK coverage.
Consideration payable
The Acquisition consideration comprises:
-- an initial payment of GBP1.5 million in cash payable on completion; plus
-- a further cash payment reflecting AFGL's surplus working
capital position at completion estimated to be approximately
GBP700,000; plus
-- deferred consideration of up to a maximum of GBP2.0 million
payable in cash, based on the profitability achieved by AFGL for
the two years ending 31 May 2020.
Xpediator plc Tel: +44 (0)330 043
2395
Stephen Blyth, Chief Executive Officer Email: info@xpediator.com
Richard Myson, Chief Financial Officer
SP Angel Corporate Finance LLP (Nominated Tel: +44 (0)20 3470
Advisor & Joint Broker) 0470
Jeff Keating
Caroline Rowe
Cantor Fitzgerald Europe (Joint Broker) Tel: +44 (0)20 7894
7000
David Foreman, Michael Boot (Corporate Finance)
Caspar Shand Kydd, Alex Pollen (Sales)
Novella Communications (Financial Public Tel: +44 (0)20 3151
Relations) 7008
Tim Robertson
Toby Andrews
About Xpediator:
Xpediator is a well-established international provider of
freight management services. Established in 1988 by CEO Stephen
Blyth, the Group's international network of offices provides road,
sea and air freight services, together with logistics and
warehousing in the UK and Romania. The business offers integrated
freight management within the supply chain logistics and fulfilment
sector, through its three main areas: freight forwarding, logistics
& warehousing and transport services. With headquarters in
Braintree, Essex and country offices in nine CEE countries across
31 sites, the Group currently employs 781 people and was
successfully admitted to London's AIM market in August 2017.
For more information, please visit: www.xpediator.com
Do follow us on Twitter at @Xpediator, or on LinkedIn at
Xpediator Plc, or alternatively find us on VoxMarkets using the
ticker "XPD".
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END
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