Adani Logistics, a wholly-owned arm of Adani Ports & SEZ (APSEZ), on Thursday signed an agreement to acquire 100% in Innovative B2B Logistics Solutions (InLogistics), a rail-based logistic firm controlled by private equity firm True North, for an enterprise value of Rs 331.5 crore.
- The Adani Logistics said in a filing to the exchanges, it will pay an upfront amount of Rs 43.2 crore in an all-cash deal, while the rest will be paid over an unspecified period of time.
- The transaction implies an equity value of Rs 43.2 crore for 100% of InLogistics shares and 10 times multiple of its expected pre-tax earnings for FY19, which takes the enterprise valuation to Rs 33.5 crore, the company said.
- The company said in a statement,”The transaction will be an all cash deal and is expected to be completed by the first quarter of FY20.”
- Post-transaction Adani Logistics will become the largest private sector rail and logistics operator in the country, it added.
- The statement said,”It enables us to expand its total addressable market, enhance network coverage and create a value chain to handle dry cargo segment.”
- APSEZ chief executive and whole-time director Karan Adani was quoted in the statement,”With this acquisition, we will become the largest private rail and logistics park operator in the country. We see significant synergies in the business across optimizing operations and leverage InLogistics’ presence for new business.”
- InLogistics fits well into their strategy and vision to be the leader in providing integrated logistics services and focus on developing hinterland logistics, he further said.
- InLogistics will add 14 container rakes, 1 logistics park spread across 38 acres and 3,566 containers to Adani Logistics, which currently operates 3 logistics parks, 2 Exim yards and 1 container yard with a capacity to handle 5,00,000 TEU per year.
- Founded in 2006, InLogistics provides integrated logistics services for domestic cargo movement and serves the Eastern and Northern hinterland markets and lists Tata Steel, Tata Sponge Iron, JSW Cement and retail marble traders as its key clients.
- Adani Logistics is the leading end-to-end logistics service providers in the country with presence across all major markets with expertise in handling retail, industrial, bulk, break-bulk, chemicals & auto cargoes.
Rail Analysis insights: With this acquisition, APSEZ will become the largest private rail and logistics park operator in the country.
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