Xpediator looks to raise £7m to fund ISL acquisition
Xpediator
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16:55 06/07/23
AIM-listed freight management business Xpediator is looking to raise £7m by way of a placing in order to support its acquisition of contract logistics and warehousing firm Import Services.
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Xpediator will issue the placing shares at 70p each, a discount of roughly 18.6% to its closing price on 6 July.
The group will absorb ISL, a long-established contract logistics warehousing business with facilities located within the Port of Southampton, on a debt-free and cash-free basis for a total of £12m.
Of the £9m initial consideration will payable on completion of the acquisition, £6m will be settled in cash, while the remaining £3m will be covered by the issue of the new Xpediator ordinary shares.
A further consideration of up to £3m in cash was contingent on the future results of ISL and the value of Xpediator shares at 29 May 2020.
Stephen Blyth, Xpediator's chief executive, said, "ISL shares similar characteristics to our previous transactions in that it is a well- established, profitable business which is operating in complementary but sufficiently distinct areas to add to both Xpediator's profitability and service capabilities."
"It is a natural fit with our business, as there is scope to combine our existing facilities in Southampton, expand our capabilities around port services and provides an opportunity to occupy a further 20k sqm of warehousing space in the future," added Blyth.
As of 1310 BST, Xpediator shares had dropped 7.73% to 79.35p.