Adani Logistics Limited (ALL), a wholly owned subsidiary of Adani Ports and SEZ Limited (APSEZ), last week announced it has signed definitive agreements to acquire up to a 100% stake in Innovative B2B Logistics Solutions Pvt. Ltd, an entity controlled by Private Equity firm True North.
The acquisition is complementary to ALL adding meaningful Size, Scale and Diversification. It enables ALL to expand its total addressable market, enhance network coverage and create a value chain to handle dry cargo segment.
The transaction implies an equity value of INR 43.2 Crores for 100% of the InLogistics shares and ~10x multiple on InLogistics’ expected EBITDA for FY19. The transaction will be an all cash deal and is expected to be completed by the first quarter in FY19 - FY20.
About Innovative B2B Logistics Solutions Pvt. Ltd (InLogistics)
Founded in 2006, InLogistics provides integrated logistics services for domestic cargo movement and is considered to be a prominent operator with circuits connecting Eastern and Northern hinterland.
The company’s network is spread across West, North and East India along with a strong customer base, which includes Tata Steel, Tata Sponge Iron, JSW Cement and retail marble traders. Over the years, InLogistics’ management team has fostered a good ecosystem of partners that support its strong growth and entrepreneurial mindset.
On 28 March, Karan Adani, CEO and Whole Time Director of APSEZ said: “We are excited today to announce the acquisition of Innovative B2B Logistics Solutions Pvt. Ltd. With this acquisition, ALL will become the largest private rail and logistics park operator in India. We see significant synergies in the business across optimising operations and leverage InLogistics’ eastern presence for new business. InLogistics fits well into our strategy and vision - To be the leader in providing integrated logistics services in India and focus on developing hinterland logistics.”