Import Services Limited becomes part of the Xpediator Plc Group
Xpediator, (AIM: XPD), has announced the official completion of the acquisition of Import Services Limited ("ISL"), a contract logistics and warehousing business based at the Port of Southampton.
Founded in 1984, ISL is a long-established contract logistics warehousing business with facilities located within the Port of Southampton. Focused on Third Party Logistics ("3PL") storage, handling and transportation, ISL has built a significant client base with a focus on clients who service the leading brands in the toy, leisure and sports sectors.
- Complementary acquisition which will add approximately 40k sqm of warehousing, operational synergies and opportunities to cross sell current Group services, in particular, European freight forwarding
- ISL generated revenues of £21.7m and unaudited normalised profit before tax of £1.8m for the year ended 31 December 2017
- Opportunity to combine the Group's existing Southampton facilities and activities with ISL creating long-term cost efficiencies
- Positioned to benefit from any upturn in international trade as a result of Brexit alongside the Group's port based operations in Felixstowe including an opportunity to develop a further 20k sqm of warehousing inside the port
- ISL's senior management shareholder team locked in for 2 years
- Expected to be earnings enhancing in the first full year of ownership
Commenting on the Acquisition, Stephen Blyth Chief Executive, said:
"ISL shares similar characteristics to our 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. ISL's position within the Port of Southampton, in particular, is a significant commercial advantage upon which the enlarged Group can expand.
"It is a natural fit with our business, as 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."
Commenting on the acquisition, John Eynon, Chief Executive of ISL said:
"Over the last 34 years, ISL has grown to become a leading independent port-centric logistic company in the UK. We are confident, as part of the Xpediator group, the business will continue to grow, providing a bright future for ISL's employees, clients and suppliers."