Allcargo Logistics Ltd, through its wholly owned subsidiary, Ecu Line has acquired US-based Econocaribe Consolidators Inc for close to $50 mln, Shashi Kiran Shetty, promoter and executive chairman said today. He was speaking at the press meet held here.
The deal has been funded via internal accruals and through loans, said Shetty. "Around 70% funding has happened through borrowings from Belgium banks, while the balance has been met via internal accruals of Ecu Line," he said.
Headquartered in Florida, Econocaribe Consolidators is the third largest non-vessel operating common carrier in the US. The newly acquired company has nine offices in the US and 22 receiving terminals throughout the US and Canada.
Alongside, the company also has a strong presence in other geographies such as Europe, the Mediterranean, Africa, Asia, Latin America and West Asia.
"Through this acquisition, we expect to add a lot of customers in and out of the US," said Shetty. "This will add to the margins significantly and will improve company's profitability," he added. Shetty, however, refrained from divulging the increase in margin quantum.
We are in discussions for another acquisition maybe in Australia or Europe and so cannot disclose all details about margins etc right away," Shetty explained.
The deal in discussion at present would be smaller than Econocaribe Consolidators deal size, said Shetty.