The Hindu Business Line : Meridian IQ eyes acquisitions in logistics sector

Meridian IQ, a $1 billion global third party logistics company, plans to acquire companies in freight forwarding and customs brokerage services space, to increase its presence in the Indian market. The company has earmarked $25-$75 million for its acquisition and expansion over the next 18 months.

Meridian IQ, a wholly owned subsidiary of Nasdaq-listed Yellow Roadway Corporation, has already drawn up a list of 20-30 companies in the country. The company aims to strengthen its competency in freight forwarding and customs brokerages through the acquisitions and may acquire more than one company depending on the size.

"We are looking at a mix of companies with annual revenues ranging from $5-$50 million," Mr Jim Ritchie, President and Chief Executive Officer, Meridian IQ, told Business Line. Geographically, while some of these companies are present in one city, some are present in multiple cities, he added declining to divulge any further details.

Meridian IQ is finalising its targets in terms of geographical presence and exact services that it would want through the acquisitions. It is in the process of finalising an investment banker for the job. Hoping to establish competencies in international freight forwarding and brokerages over the next 18 months, the company plans to increase its strength in logistics components (transportation, domestic forwarding, distribution) in India in the second phase of its operations.

"We shall invest a similar level of ($25-$75 million) investment in our second phase operations," Mr Ritchie said. In the third phase, Meridian IQ would look at strengthening its ground transportation network.

Meridian IQ has been present in India for over four years now and has been witnessing compounded annual revenue growth of over 20 per cent, he said, adding that the base is quite low.

Declining to divulge any country-specific revenues, he added that the company is registering higher growth in net profits as compared to revenues. The company expects growth from retail, readymade garments and manufacturing sectors.

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