Freight management services company Xpediator on Monday said it was buying Anglia Forwarding Group (AFGL) for an initial £1.5m.
The acquisition is Xpediator's third since listing on the AIM market and is expected to be earnings enhancing "immediately". Anglia is a UK-based international freight forwarder with road, sea and freight capabilities.
On top of the up front cash from exiting resources, Xpediator will stump up an extra £0.7m reflecting AFGL's surplus working capital position at completion. A further £2m may also be payable contingent on profits generated by AFGL over the two years ending 31 May 2020.
Xpediator said AFGL is a complementary acquisition that presents" good cross-selling opportunities and operational synergies". It generated unaudited revenue of £13.5m and more than £0.4m in normalised operating profits for the year eto 31 July 2017.
AFGL has operations 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, Xpediator said.
Xpediator chief executive Stephen Blyth said AGFL would "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," he said.
"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."
He added that Xpediator was trading in line with market expectations "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."