TIDMXPD
RNS Number : 1599B
Xpediator PLC
06 October 2020
6 October 2020
Xpediator Plc
("Xpediator" or the "Company" or the "Group")
Acquisition of UK based Freight Forwarder and Operator Nidd
Transport
Xpediator, (AIM: XPD), a leading provider of freight management
services across the UK and Central and Eastern Europe, is pleased
to announce it has acquired the UK-based international groupage
freight forwarder and operator, Nidd Transport Ltd ("Nidd") for
GBP4.6 million.
Acquisition highlights:
-- Nidd based in Ripon (North Yorkshire) specialises in daily
express deliveries to mainland Europe by road with particular focus
on France, Spain, Portugal and Germany as well as a providing a
strong UK distribution platform particularly in the North of
England.
-- Established in 1984, Nidd has built up long-term customer
relationships with Northern based businesses in the UK through a
high-quality service provision of European and nationwide
distribution and storage.
-- Complementary acquisition with immediate cross-selling
opportunities and a natural fit with the Group's existing
operations.
-- Generated revenue of GBP11.0 million, operating profit of
GBP0.5 million and profit after tax of GBP0.4 million during the
year ended 30(th) April 2020.
-- Net assets include freehold property of HQ and warehouse
valued at GBP2.1 million, as at 30 April 2020.
-- Current cash reserves of approximately GBP2.0 million.
-- Total consideration of GBP4.6 million will be funded in cash from existing resources.
-- Employs 65 people and specialises on road transport routes
into France, Spain, Portugal and Germany using a mixture of its own
fleet of 45 vehicles and trailers and subcontracted vehicles.
-- Nidd is a founder member of Palletforce, providing a
nationwide overnight UK delivery service.
-- Acquisition is expected to be immediately earnings enhancing.
Nidd Transport
Founded by Tony White 36 years ago the business has evolved and
developed a strong reputation for efficiency and excellent customer
service. Providing daily road freight services into Europe
primarily into France, Spain, Portugal and Germany, but also into
other European countries. Offering part load and full loads to
customers from a broad range of industries the focus is on speed
and reliability. By being a founder member of Palletforce, a
leading pallet network across the UK, this provides enhanced
capability to deploy a full range of daily UK distribution services
and additional income stream through Nidd being responsible for all
Palletforce deliveries from the UK into Spain and Portugal.
Potential Acquisition Benefits
-- Nidd's focus on western Europe complements Xpediator's focus
on central and eastern Europe, Italy and Germany.
-- Clear opportunities to cross sell Xpediator's services to
Nidd's customer base and maximise carrying capacities to and from
Europe.
-- Synergies of linking UK national service offering, using
Nidd's transport and distribution in the North with Xpediator Plc
strengths in the Midlands and Southern regions.
-- Customs clearance services of the enlarged Group
differentiates Nidd's prospects going into a potential hard
Brexit.
-- Minimum integration costs, the business will continue to operate under the Nidd brand.
-- Tony White intends to retire after a handover period and Nidd
will continue to be run by the current management team whilst
benefiting from the synergies of being part of a larger group.
Robert Ross, Xpediator CEO, commented, "We have known Nidd
Transport for some time and its reputation for being an excellent
regional freight forwarder. I am therefore delighted Tony has
chosen to entrust us with the future of his business and all the
people who work for Nidd. Our aim is simply to continue to grow the
company and we are confident we can do so.
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 expect both
existing client bases to benefit from the enhanced service
offerings."
Tony White, Managing Director, Nidd, said: "It was important to
me to find the right buyer for our Company and I believe we have
done so, ensuring it's long term success with a bright future for
the loyal team of colleagues that have supported me over the years.
While I am stepping away from the business I believe, by becoming
part of the Xpediator Group, the future prospects for Nidd will be
enhanced, in terms of continuing to provide our clients the high
quality service they have enjoyed, together with being able to
offer expanded services which will also create opportunities for
the business to gain new clients."
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries
Xpediator plc Tel: +44 (0)330 043
2395
Robert Ross, Chief Executive Officer Email: info@xpediator.com
Cenkos Securities plc (Nominated Adviser & Tel: +44 (0)20 7397
Broker) 8900
Max Hartley, Max Gould (Corporate Finance)
Nick Searle (Sales)
Novella Communications (Financial Public Relations) Tel: +44 (0)20 3151
7008
Tim Robertson
Fergus Young
About Xpediator:
Xpediator is a well-established international provider of
freight management services. Established in 1988, the Group's
international network of offices provides road, sea and air freight
services, together with logistics and warehousing in the UK and
Romania. The business offers integrated freight management within
the supply chain logistics and fulfilment sector, through its three
main areas: freight forwarding, logistics & warehousing and
transport services. With headquarters in Braintree, Essex and
country offices in nine CEE countries across 38 sites, the Group
currently employs over 1,000 people and was successfully listed on
London's AIM market in 2017.
For more information, please visit: www.xpediator.com .
Alternatively, do follow us on Twitter at @Xpediator or find us
on LinkedIn at Xpediator Plc .
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END
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