Braintree company to buy Port of Southampton logistics firm for £12m
- Credit: Archant
A freight management company from Braintree is about to acquire a Southampton-based warehousing business for a consideration of up to £12m.
The service provider Xpediator is buying up contract logistics and warehousing business Import Services Limited (ISL) for a consideration of up to £12 million.
Xpediator, which is based on Avenue W in Braintree, will add around 40,000 sq. m of warehousing to its existing operations and benefit from opportunities to cross-sell current group services. It aims to combine existing Southampton facilities with ISL to create long-term cost efficiencies.
Xpediator’s chief executive Stephen Blyth explained that ISL shares similar characteristics to Xpediator’s previous transactions - “in that it is a well- established, profitable business which is operating in complementary, but sufficiently distinct areas to add to both Xpediator’s profitability and service capabilities,” he explained. “ISL’s position within the Port of Southampton, in particular, is a significant commercial advantage upon which the enlarged Group can expand.
“There is scope to combine our existing facilities in Southampton, expand our capabilities around port services and provides an opportunity to occupy a further 20k sqm of warehousing space in the future. The combination of these factors make us confident that ISL will be a strongly earnings accretive acquisition for the Group.”
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The purchase wil not result in the company taking on any new staff in Braintree, But Xpediator does expect to enhance its earnings in the first year of full ownership. The acquisition will place Xpediator in a position to benefit from the upturn in international trade post-Brexit alongside its operations in Felixstowe, as the group aims to develop a further 20,000 k sq. m of warehousing inside the port.
ISL generated revenues of £21.7m for the year ending December 2017.
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Xpediator will initially pay £9m for the sale, comprising £6m in cash and £3m through the issue of new Xpediator shares.