Xpediator PLC (LON:XPD) has announced the acquisition of Yorkshire based groupage freight firm Nidd Transport for £4.6mln.
The London-listed UK and Europe-focused freight management company described the deal for Nidd, a specialist in daily express delivery to the continent by road, as complementary and said it brings immediate cross-selling opportunities.
Xpediator said the deal will be immediately earnings enhancing.
Nidd generated some £11mln of revenue in the year ended April 30, for £400,000 profit after tax.
The deal includes freehold property – headquarters and warehouse – worth £2.1mln and the business currently employs 65 people and has a fleet of 45 vehicles.
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"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,” said Robert Ross, Xpediator chief executive in a statement.
“Our client bases are similar but do not have significant overlap and while our services (are) 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," he added.
Nidd's managing director, Tony White added: “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 group said White is set to retire upon completion of the deal.
