Release - Allcargo consolidates its position in Contract Logistics business buys out partners 38.87% stake
March 06 , 2023
Mumbai, 06 March, 2023: The board of Allcargo Logistics limited has approved the plan to acquire 38.87% stake from its partners at an enterprise value of Rs. 373 crores. With the acquisition, Allcargo Logistics will take its stake to 100% in the contract logistics business. The acquisition reflects the group's vision for robust growth by creating an effective synergy between contract logistics and express distribution.
The acquisition price is based on the agreement that was signed with ACCI JV partners in 2016 and with tremendous growth in this business over the years, this proves to be a highly value accretive acquisition.
Commenting on the contract logistics acquisition, Shashi Kiran Shetty, Founder & Chairman, Allcargo Group said, "This important acquisition will offer us management control and facilitate strategic decision-making. This will help us enhance service delivery capabilities to drive growth. The business has witnessed robust growth over the years diversifying into several new industry segments. We can also expect more synergy between contract logistics and express distribution to further strengthen group’s position in the fast-growing express and contract logistics space.”
Allcargo’s Contract logistics business is engaged in managing inventories and providing third party supply chain solutions to marquee Indian and international customers across chemical, auto, e commerce and other industries. The business has a total space of over 5 million square feet under its management and reported an EBITDA of 31 Cr for the quarter Q3 FY22 23.
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