Mainfreight accquires US logistics company

Source: Exec Digital

Date :18/09/2007 12:00:15

Mainfreight is to acquire US freight forwarder and logistics provider Target Logistics for $75.6 million ($US 53.7 million).

Target's board unanimously approved the takeover.

Mainfreight - New Zealand's biggest listed transport and logistics company - said the acquisition will provide it with a foundation for further growth in both the U.S. and international freight markets.

Don Braid, Mainfreight's Group Managing Director said: "We are impressed by Target Logistics' strong culture and we look forward to assisting Target Logistics in achieving its growth targets and expectations."

Mr Braid also said that the acquisition, which is Mainfreight's largest ever, would be earnings positive.

International Network

Target provides freight forwarding and logistics services in the US and internationally.

It currently has a network of 34 offices across the United States, including exclusive agency relationships in 20 cities, and also maintains an international network of agents covering 70 countries.

Mainfreight says it expects Target Logistics' sales revenues in the financial year to June 2008 to exceed $US 180 million, and with positive earnings.

In April of this year, Mainfreight sold its 5 percent stake in freight forwarding business LEP and its logistics services provider Pan Orient Project Logistics operations to Agility Group for $A83 million.

September 18 2007

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