Thu, 09 Nov 2023 | BUSINESS SALE
KAMMAC, a contract logistics firm based in the North West, is set to be acquired by logistics giant Elanders in a deal with an initial valuation of just over £100 million. In its accounts for the year ending December 31 2022, KAMMAX reported turnover of £84.1 million, up from £67.9 million a year earlier, and pre-tax profits of £19.6 million, up from £7.5 million in 2021.
The Skelmersdale firm has seen rapid growth over recent years, with around 20 per cent growth annually in the last three years and good profitability. The company operates from a network of 15 warehouses across the North West and, following the acquisition, the UK will become Sweden-headquartered Elanders’ fourth largest market.
The initial valuation, which includes an earn-out based on the outcome of 2024 and to be paid during the second quarter of 2025, amounts to slightly over £100 million on a cash and debt free basis. The deal will mainly be financed through existing credit facilities and acquisition costs are expected to be around SEK20 million.
Following the acquisition, KAMMAC will be consolidated into the Elanders Group. KAMMAC Chief Operations Officer Ged Caribini said: "With Elanders' global base we will now be able to further grow in the UK by offering Elanders' existing customers our solution.”
Caribini continued: "We see great opportunities to develop our offer by using Elanders' own developed platform for omnichannel solutions, which we already have requests for. We are also convinced that our unique business model will create new business opportunities for Elanders in other markets."
Elanders Chief Executive and President Magnus Nilsson commented: "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 maximising resource utilisation. 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."
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