Monday, November 6, 2017

UK Logistics Group Buys Up B2B Freight Forwarder in Latest Acquisition

Latest Purchase Expands Into Amazon Courier Territory
Shipping News Feature
UK – Following on from their recent acquisition of Benfleet Forwarding, Xpediator has announced it has acquired Regional Express Limited, a UK-based freight forwarder and international courier. The initial consideration payable on completion is £1.2 million comprising £1.08 million in cash and £0.12 million in new Xpediator ordinary shares.

Regional Express generated revenue of £6.0 million, operating profit of £249,000 and profit after tax of £198,000 during the year ended 31 March 2017. An asset-light operation providing B2B international road, sea and air freight services from their bases in Dorset and Hampshire, Regional Express is an approved service provider to Amazon Global Selling and on completion of the purchase the enlarged Xpediator Group will operate from 6 sites in the UK together with 11 European offices employing over 690 people. Stephen Blyth, Xpediator CEO, commented:

“Regional Express is an exciting profitable niche operator and one which will fit well into the Xpediator Group, adding significantly to our existing air and sea freight operations, two areas where we have been looking to expand our presence. We also expect there will be a number of synergistic opportunities through offering Regional’s clients the wider services of the Xpediator Group in particular in warehousing and fulfilment, plus our European Network.

“Regional’s growing business with Amazon is a key attraction for us and one which will increase our exposure to the fast growing e-commerce market. There is potential for Regional to develop the relationship further with Amazon and we believe that is enhanced by Regional becoming part of the enlarged Group.

“We are very pleased that Regional will be led by Neil Curran, who will continue to be mentored by Eric Buggy over the Earn Out period. Neil is a very experienced freight forwarder and has the necessary ambition to drive the company forward.”

“We have been in dialogue with Regional since before our IPO in August and I am delighted that we have concluded the transaction. I feel confident the business will be significantly earnings accretive for our shareholders.”

Eric Buggy, founder of Regional Express, said,

“Regional Express has grown impressively in recent years, benefitting in particular from services provided to the e- commerce sector, but we recognised we needed to share a larger platform to maintain this growth. As part of the Xpediator Group, we are confident of further growing our operations from leveraging their larger platform, and in particular, the award winning EshopWedrop division. Equally important was finding a partner who shares our focus on high customer service, strong customer relationships and an entrepreneurial flair; in the Xpediator team, we have found such a partner.”