Expolanka acquires Canadian logistics major for Rs. 22 b

Saturday, 1 April 2023 00:07 - - {{hitsCtrl.values.hits}}

Sri Lanka’s most valuable company, Expolanka Holdings PLC, has signalled its aggressive expansion by acquiring a Canadian logistics giant LEI Group for a staggering Rs. 22 billion.

The company said fully owned subsidiary EFL Global Logistics Ltd. (EFL Singapore) has acquired 100% equity interest of LEI Group for a purchase consideration of CA $ 90 million (around Rs. 22 billion) on a cash free debt free basis on 30 March.

“As part of the company’s North America strategy, the acquisition enables EFL Global to expand its footprint in the Canadian market and strengthen capabilities to provide end-to-end logistics solutions to customers across various industries,” Expolanka said.

Established in 1976, LEI Group is a family-owned Canadian logistics company with a history of nearly 47 years offering a full suite of logistics services, including ocean freight, air freight, warehousing, customs brokerage, rail service, distribution, fulfilment, domestic trucking, and drayage. Considered as one of the largest Canadian owned freight forwarders, it has branches across the country and internationally.

Investor reaction yesterday to the biggest ever acquisition was somewhat muted as the Expolanka share price gained by only Rs. 7.50 or 5.7% to Rs. 138.

In February this year Expolanka acquired Trans American Customhouse Brokers LLC and its related companies for $ 42.5 million on a cash free debt free basis. Expolanka said the acquisition will extend EFL›s brokerage services to its existing customer base thereby enhancing service portfolio, expand customer base and scale its operations across North America.

In FY2022 Expolanka made three strategic acquisitions investing $ 18 million in expanding its operations in the Americas.