6th Oct 2020 11:20
(Alliance News) - Xpediator PLC on Tuesday said it has acquired UK-based freight forwarder and operator Nidd Transport Ltd for GBP4.6 million.
Ripon, North Yorkshire-based Nidd specialises in daily express deliveries to mainland Europe by road with particular focus on France, Spain, Portugal and Germany. For the year ended April 30, 2020, it generated revenue of GBP11.0 million, operating profit of GBP500,000 and pretax profit of GBP400,000.
The freight management services firm stated its acquisition of Nidd presents immediate clear opportunities to cross sell Xpediator's own services to Nidd's customer base and maximise carrying capacities to and from Europe. It also highlighted benefits which include synergies of linking its UK national service offering using Nidd's transport and distribution in the North with Xpediator's strengths in the Midlands and Southern regions.
Xpediator said the total GBP4.6 million cash consideration will be funded from its existing cash resources, adding that the acquisition is expected to be immediately earnings enhancing.
"We have known Nidd Transport for some time and its reputation for being an excellent regional freight forwarder. Our client bases are similar but do not have significant overlap and while our services our comparable our geographic focuses are different. There are therefore immediate opportunities to provide greater geographic coverage to both client bases and we expect both existing client bases to benefit from the enhanced service offerings," said Xpediator Chief Executive Robert Ross.
Shares in Xpediator were trading 15% higher at 26.35 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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