New Zealand-based Mainfreight Limited (NZX: MFT) has entered an agreement to buy Dutch integrated logistics and transport company Wim Bosman Group for €110 million (US$153.9 million).
In a release to the New Zealand Stock Exchange the company said the European exposure will give greater opportunities for its existing customers in New Zealand, Australia, Asia and the U.S.
"The acquisition is a strong strategic fit for Mainfreight and will provide an excellent platform for Mainfreight to expand its business and service offering globally," the release said.
"The Wim Bosman Group is one of the largest privately-owned, integrated transport and logistics providers in the Netherlands and Belgium with 14 branches across six European countries, with more than 1,000 transport units, more than 275,000m of warehouse and cross docking facilities and approximately 1,414 team members.
"The Group provides transportation and logistics services across Europe utilizing road, sea and air transportation. Third party warehousing services are an attractive feature of the supply chain activities offered to its customers."
The sale agreement also includes an earn out arrangement whereby if the Wim Bosman Group achieves an EBITDA of €20 million (US$27.98 million) or more, Mainfreight will pay an additional €10 million (US$13.99 million). In the 2010 calendar year the Wim Bosman Groups EBITDA was €19.4 million (US$27.15 million).
Mainfreight's share price has risen significantly in the last 12 months from NZ$6 to NZ$8.59 (€3.16 to €4.53).