Release Date: 23 September 2009
Release ID: 4257
Expands freight forwarding network to enhance end-to-end service
Hong Kong, 23 September 2009 – Integrated Distribution Services Group Limited (or “the Group”, or “IDS”; SEHK: 2387), an Asian multinational provider of integrated distribution services, today announced it has reached agreements with the shareholders of AGI Logistics, Inc. (AGI) and the minority shareholders of certain of its subsidiaries, to acquire the entire share capital of the company and the shares held by these minority shareholders. The total consideration ranges from a minimum of US$1.6 million to maximum of US$6.1 million, subject to the achievement of certain profit targets for the years 2010 and 2011. The Group intends to finance the transaction through internal cash reserves and bank borrowings.
AGI was founded in 1999 in the US and has an extensive network of freight forwarding offices in the United States, China, Hong Kong, Malaysia, Pakistan, Bangladesh, Singapore, Cambodia and Thailand. AGI provides a wide range of services, including air and ocean freight forwarding, customs brokerage and domestic logistics, and has a strong customer base in the retailing and apparel sectors, including companies such as Abercrombie & Fitch, Warnaco, Things Remembered and Renfro.
“I am delighted about the acquisition,” said Mr. Ben Chang, Group Managing Director of IDS. “We now have a comprehensive freight forwarding network in place in the US and across Asia. This is also a synergistic fit with the freight forwarding capability we gained during the acquisition we made in the UK in 2007. IDS’ service offerings under the International business stream and our proposition of end-to-end global logistics solutions have been substantially strengthened.”
With this acquisition, IDS is now able to offer freight forwarding service directly to its customers, especially the apparel-centric clientele of IDS USA. Combined with the Group’s existing Asian operations, the AGI network will also provide excellent opportunities for synergy and expansion.
“Many of our US customers require freight forwarding service for importing their products from various sourcing locations. Now, we can extend our scope of services and provide them with a one-stop solution,” said Mr. Chang. “In addition, we see opportunities to satisfy the intra-regional needs of our customers in Asia, where we are running regional export programs. AGI’s clientele also offers great opportunities for IDS to cross-sell our other services.”
“Moving forward, we will continue to look for suitable bite-size acquisition targets that can add scale to our existing operations and enhance our overall value proposition,“ concluded Mr. Chang.
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