, (AIM: XPD), Delamode’s parent company, 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 £1.5 million, plus a further cash payment reflecting AFGL’s surplus working capital position at completion estimated to be approximately £700,000. Deferred cash consideration of up to £2.0 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.
On completion, the enlarged Group will operate from 10 sites in the UK together with 11 European offices employing 781 people.
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