Expolanka acquires leading Canadian freight forwarder LEI Group for CAD 90mn

Continuing with its acquisition spree, Expolanka Holdings PLC yesterday announced that it acquired a 100 percent stake in leading Canadian freight forwarder LEI Group for Canadian dollars (CAD) 90 million (US $ 66.47 million). 
“… EFL Global Logistics (Pte.) Ltd (EFL Singapore), a fully-owned subsidiary of Expolanka Holdings PLC (Expolanka), has acquired the 100 percent equity interest of LEI Group for a purchase consideration of CAD 90,000,00 (CAD ninety million only) on a cash-free debt-free basis, on March 30, 2023,” Expolanka announced in a stock filing yesterday.  

The latest acquisition is expected to enable Expolanka to expand its footprint in the Canadian market and strengthen capabilities to provide end-to-end logistics solutions to customers across various industries. 
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.  

Over the years, LEI has grown to become one of the largest Canadian-owned freight forwarders, with branches across the country and internationally. It owns and operates a 150,000 sq. ft. warehouse in Annacis Island and 52,000 sq. ft. warehouse in Brampton.  Earlier this year, Expolanka 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.  

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 the 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.

SG Holdings Global Pte Ltd, as at December 31, 2022, held 79.47 percent of the issued shares of Expolanka.  
The share price of Expolanka stock climbed up by Rs.7.50 or 5.75 percent to Rs.138 per share at yesterday’s market closure.