Elanders makes a new acquisition and strengthens its market position in contract logistics in the UK
Press Release from Elanders AB (publ) 2023-11-08
Elanders has today acquired all shares in the English contract logistics company KAMMAC Ltd (“Kammac”). Kammac is a fast-growing company that in the last twelve-month period had net sales of more than GBP 90 million with very good profitability. The purchase price will be paid in two parts, one at the time of the takeover and the other as an earn-out in 2025.
In line with Elanders’ strategy to constantly develop its offer and broaden its customer base, today Elanders signed an agreement to acquire all shares in the English contract logistics company Kammac Ltd. The acquisition will make UK Elanders’ fourth largest market. UK is also one of Europe’s largest logistics markets.
Kammac has developed a unique concept where they offer their customers maximum storage flexibility through a network of 15 warehouses in northwest England. Several warehouses offer services such as bonded warehouses and temperature-controlled environments. Kammac also has a license to handle medical products such as pharmaceuticals and their components. The company has a solid business model and during the past three years has grown on average by about 20% annually with good profitability. One of its competitive edges is that the start-up time for new customers is only one to two weeks. Net sales are generated in various customer segments, which makes the company less vulnerable to fluctuations in the economy.
“I am very impressed by the company that the owner, Paul Kamel, and Ged Carabini, Chief Operations Officer, have developed together. They have created a successful company where the business model focuses on offering customers a high level of flexibility for interim storage of their products and components. The company is successful because they have built up a cluster of warehouses close to each other, and this creates both large scale and competitive advantages. What Kammac is especially good at is maximizing resource utilization. We look forward to working together developing Kammac’s offer in the UK. We also see an opportunity to copy their business model in other countries where we operate”, says Magnus Nilsson, President and CEO of Elanders.
Ged Caribini, Chief Operations Officer of Kammac, comments the acquisition:
“I am very proud of the growth we have achieved and the unique platform that we at Kammac have created in the past few years. With Elanders’ global base we will now be able to further grow in the UK by offering Elanders’ existing customers our solution. We see great opportunities to develop our offer by using Elanders’ own developed platform for omnichannel solutions, which we already have request for. We are also convinced that our unique business model will create new business opportunities for Elanders in other markets”.
During the last twelve-month period, Kammac had net sales of more than GBP 90 million with very good profitability. The company will be consolidated into the Elanders Group as of November 2023. The initial valuation, including the earn-out, amounts to just over GBP 100 million on a cash- and debt-free basis, of which around two thirds will affect cash flow negatively in the fourth quarter 2023. The earn-out will be paid during the second quarter 2025 and is based on the outcome of 2024. The acquisition is mainly financed with existing credit facilities and the acquisition costs are expected to be approximately SEK 20 million.
For more information, please contact
Magnus Nilsson, President and CEO, telephone: +46 31-750 07 50
Andréas Wikner, CFO, telephone: +46 31-750 07 50
This information is information that Elanders AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07:30 CET on 8 November 2023.