Logistics

Allcargo Logistics buys 65% stake in Nordicon Group

Our Bureau Mumbai | Updated on July 30, 2021

investment banking sources said the valuation of the company would be twice the turnover of Nordicon Group which is in the range of €45-50 million

Allcargo Logistics, which has announced plans to delist from the bourses, said on Friday its wholly-owned global subsidiary signed a deal to acquire 65 per cent stake in Nordicon Group, which runs less than container load (LCL) and rail consolidation in the Nordic region.

Allcargo did not disclose the deal size, but investment banking sources said the valuation of the company would be twice the turnover of Nordicon Group which is in the range of €45-50 million.

The deal will propel Allcargo Belgium NV (part of global affiliate ECU Worldwide) into a market leading position with a near 40 per cent share of the LCL business in the Nordic region, Allcargo Logistics said in a statement.

Expanding network

The agreement expands ECU Worldwide’s service network and global reach further, adding new geography and a specialised rail freight consolidation service to expand further across Europe. The partnership will help better serve customers who are looking at flexible and time-bound logistics solutions in the Nordic region.

“The partnership with Nordicon is in line with our vision of consolidating our market leadership and working with entrepreneurial teams to expand into new territories who share our vision for digital innovation for the logistics sector. It is a great way to scale the global business and better serve customers,” said Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide and Gati.

“Nordicon has an innovative asset-light rail consolidation business which opens new opportunities for ECU Worldwide across Europe,” said Ravi Jakhar, Chief Strategy Officer, Allcargo Logistics.

“Nordicon’s integration with the ECU network will lead to incremental business revenue and margins at existing ECU offices across the world. This is a high value accretive deal for ECU Worldwide and Allcargo and will create value for stakeholders,” he added.

The acquisition bolsters the profile of Allcargo in overseas markets as it braces up to delist from the Indian stock exchange and prepares for a potential listing abroad, industry sources said.

Published on July 30, 2021

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