Expolanka acquires US-based Trans American Group for US $ 42.5mn

Expolanka Holdings PLC yesterday said it acquired a 100 percent stake in the US-based Trans American Customhouse Brokers LLC and its related companies (Trans American Group), for US $ 42.5 million. 

“… EFL Global LLC (EFL USA), a fully-owned subsidiary of Expolanka Holdings PLC (Expolanka), has acquired 100 percent equity interest of Trans American Customhouse Brokers LLC and its related companies (Trans American Group), on February 24, 2023, for a purchase consideration of US $ 42,500,000.00, on a cash-free debt-free basis,” Expolanka announced in a stock filing yesterday. 

Established in 1984, Buffalo-based Trans American Group is considered to be a leading customs house broker in North America, with a history of nearly 40 years, servicing a range of leading brands in the US and Canada. The group’s custom business unit ranks in top 20, among over 3,000 US customs brokers.

Expolanka reported earnings of Rs.2.99 billion on a revenue of Rs.94.28 billion in the December 2022 quarter, down from Rs.23.04 billion earnings reported a year ago, largely due to collapse of global freight rates. As at December 31, 2022, Expolanka had Rs.107.96 billion as retained earnings, up from Rs.91.84 billion nine months ago.

With the latest acquisition, the company plans to enhance its service portfolio and expand its customer base in North America. 

“The acquisition will enable EFL to extend its brokerage services to its existing customer base, thereby enhancing the service portfolio to the existing customers, expand its customer base and scale its operations across North America,” the filing said. Following the announcement, Expolanka stock gained Rs.5.00 or 2.86 percent, to close at Rs.180.

SG Holdings Global Pte Ltd, as at December 31, 2022, held 79.47 percent of the issued shares of Expolanka.