Expolanka acquires US logistics firm for US $ 9.7mn

Expolanka Holdings PLC yesterday said it fully acquired IDEA Logistics LLC, a US-based logistics company, for US $ 9.7 million, aiming to expand its operation into Central America.

The acquisition was carried out through Expolanka’s fully-owned subsidiaries EFL Global Logistics (Pte.) Ltd (Singapore) and EFL Global LLC (USA).

“IDEA Logistics LLC is a Central American logistics company headquartered in the United States, servicing a range of US customers, offering freight forwarding, warehousing and trucking services,” Expolanka said in a stock market filing.

“The acquisition is an important strategic initiative enabling Expolanka to expand its operations into Central America, which is gaining popularity as an emerging and fast-growing apparel manufacturing hub, in relation to near shoring strategies adopted by leading US customers,” it added. 

Expolanka’s fortunes completely changed for the better with the onset of the pandemic. Higher demand for freight, due to virus-related disruptions and increased airfreight charges helped the company’s turnover and earnings to grow substantially.

Expolanka share aptly captures the company’s transformation as it was trading around Rs.2.50 before the pandemic. In comparison, Expolanka share closed at Rs.149.25 yesterday and Expolanka is currently the highest market cap company on the Colombo Stock Exchange.