Aqua Logistics will be acquiring upto 60 per cent stake for an undisclosed sum in Chennai-based Star Distribution Logistics, the company said here today.
The acquisition will help Aqua, a third-party logistics solutions provider, strengthen its distribution and reverse logistics capabilities as also get new clients in the FMCG, pharma and consumer electronics space, currently serviced by Star, read a press release by the company.
Aqua will pick 40 per cent stake in Star initially and subject to business done by Star and other conditions, it will acquire an extra 20 per cent within two years, giving it complete control over the target company, the release said, without specifying the deal size.
“The acquisition would help us strengthen our pan-India presence and address a wider customer base,” Aqua's Vice- Chairman M S Sayad said.
Aqua has clocked a turnover of Rs 322.01-crore in FY 10 with a net profit of Rs 20.54-crore. Shares in the Mumbai-headquartered firm were trading at Rs 597.65, up 1.43 per cent at 2.30 pm at the Bombay Stock Exchange.
Founded by technocrats, Star distribution has a good presence in warehousing and last mile logistics solutions space. Its network is spread over 20 cities and 300 towns.
Source: Economic Times