Mumbai, Jul 30: Allcargo Logistics on Friday said it has acquired a 65 per cent stake in Nordicon Group, a market leader in LCL (less-than-container-load) and rail consolidation segment in the Nordics region, for an undisclosed amount.
The acquisition is being executed through Allcargo Belgium, a wholly-owned subsidiary of the country’s largest integrated logistics solutions provider in the private sector.
This is the third major acquisition of Allcargo since it bought ECU Worldwide in 2003– first, a 33 per cent take and then increased it to 49.9 per cent in 2006. And in December 2019, it bought Gati, one of the express logistics leaders in the country, for Rs 416 crore.
Our subsidiary ECU Worldwide has signed a definitive joint venture agreement with the Nordicon Group of Sweden. While we will hold a 65 per cent stake in the company, the present owners of Nordicon will continue to own the balance 35 per cent, Allcargo said in a statement.
With this strategic deal, ECU Worldwide will now control nearly 40 per cent of the LCL market in the Nordic region, it added.
Nordicon is the leading freight consolidation company in the Nordic region with offices in Sweden, Norway, Finland, and Denmark. From its own warehouse in Gothenburg in Sweden as well as local terminals in each country, it consolidates freight to more than 500 export destinations and from over 300 import locations around the world.
The deal expands ECU Worldwide’s service network and global reach further, adding new geography and a specialised rail freight consolidation service to expand further across Europe. It will also help better serve those customers looking for flexible and time-bound logistics solutions in the Nordic region.
Allcargo Logistics Group chairman Shashi Kiran Shetty said the Nordicon deal is in line with our vision of consolidating market leadership and expanding into new territories. This partnership is a great way to scale the global business and better serve customers.
Nordicon has an innovative asset-light rail consolidation business that opens new opportunities for ECU Worldwide across Europe, said Ravi Jakhar, chief strategy officer at Allcargo Logistics.
Nordicon’s integration with the ECU network will lead to incremental business revenue and margins at existing ECU offices across the world. This is a high-value accretive deal for ECU and Allcargo, he added.
Allcargo Logistics, held by Avvashya Group, is a global leader in multi-modal logistics solutions.
Allcargo Belgium, which operates the ECU Worldwide network, is a global market leader in ocean freight consolidation, while Allcargo leads the container freight station business in the country and is also a leader in express logistics through subsidiary Gati.
It also has a strong presence in contract logistics. The group operates over 300 offices across 180 countries. (PTI)
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