Xpediator Plc, Delamode’s holding company, has completed the acquisition of UK-based international freight forwarder, Benfleet Forwarding Ltd.
As stated at the time of Xpediator’s IPO in August this year, a key reason for Xpediator listing on AIM was to facilitate the Company’s M&A strategy in the highly fragmented freight forwarding and logistics market. Benfleet was identified as an acquisition opportunity prior to the Company’s IPO given the natural fit between the two businesses offering attractive synergies and cross-selling opportunities.
Benfleet, headquartered in Basildon, England, is an international freight forwarding business established in 1987, specialising in the movement of flooring, machinery, household goods and garments. Benfleet’s highly experienced management team, operates an asset-light operation that includes road transport and ocean freight shipments, coordinated through offices in Dover and Felixstowe, with services extending across Southern Europe to Italy, Greece, Portugal and Turkey, as well as the Far East and China. In 2015, Benfleet secured a significant Chinese customer with which it entered into a six-year contract and which Xpediator believes could result in further cross-selling opportunities.
Stephen Blyth, Xpediator CEO, commented, “We know the Benfleet business well and we are confident it will be a commercially valuable and accretive acquisition for us. Benfleet shares our asset light approach to freight forwarding and will add significantly to our sea freight activities.
“The Benfleet team are well known and highly experienced and we are delighted that Jason Herring, Benfleet’s Managing Director, will continue to run the business.
“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 have identified duplicated costs.
“Our strategy is to grow not only organically but also by acquiring smaller competing businesses which can enhance the Group’s earnings and enhance our services to existing and new clients. This acquisition meets these criteria and we look forward to integrating Benfleet alongside our Delamode freight forwarding activities.”
Potential Acquisition Benefits