Elanders makes major acquisition in North America and grows in E-Commerce
11 Noviembre 2021 - 12:30AM
Elanders makes major acquisition in North America and grows in
E-Commerce
Today Elanders acquired 80% of the shares in the American supply
chain management company Bergen Shippers Corp. Bergen Shippers Corp
operates under the name Bergen Logistics and is specialized in
contract logistics services for the customer segment Fashion &
Lifestyle. The company had net sales of MUSD 82 in 2020 and net
sales for the full year 2021 are expected to be around MUSD 102.
Forecasted EBITDA for the full year 2021 is around MUSD 15,
excluding IFRS 16 effects. This acquisition will turn Fashion &
Lifestyle into one of Elanders’ largest customer segments.
In line with Elanders strategy of investment and growth in the
segment Fashion & Lifestyle, Elanders has signed a contract to
acquire the American supply chain management company Bergen
Shippers Corp. (Bergen Logistics or the Company). Through the
acquisition of Bergen Logistics Elanders will be able to offer
unique global solutions for brands active in Fashion &
Lifestyle. The acquisition also means that Elanders will
considerably strengthen its position on the North American market,
which will in turn bolster Elanders’ offer in other customer
segments.
Bergen Logistics is specialized in smaller and mid-sized brands
in Fashion & Lifestyle and has developed a unique platform that
enables them to manage a large number of customers in a highly
profitable way. Their largest customer only represents four percent
of the company’s total sales and the company has around 450
customers in all. Bergen Logistics operates primarily on the North
American market (USA & Canada), but they also help their
customers globally through their own unit in the Netherlands and
through partners in Asia.
“I’m very impressed by the company Ron and Eli Roman have built.
Putting Bergen Logistics together with our subsidiaries in Europe
and Asia will make us a leading global actor in contract logistics
solutions for companies in Fashion & Lifestyle, especially in
E-Commerce. Fashion & Lifestyle is already the customer segment
with the highest organic growth in Elanders, primarily driven by
growth in E-Commerce. In the past year we’ve received quite a lot
of requests from our European customers for help in establishing
their companies on the North American market. As of tomorrow, we’ll
be able to do just that. The acquisition of Bergen Logistics also
means Elanders will broaden our customer base, which will make
Elanders considerably less sensitive to ups and downs in the
business cycle”, says Magnus Nilsson, President and CEO for
Elanders.
Ron Roman, President and principle owner of Bergen Logistics
comments on the deal saying:
“I’m really proud of how the company has grown, and the unique
platform Bergen Logistics has developed over the past 20 years.
Today we’re one of the leading players in contract logistics
solutions for Fashion & Lifestyle brands in North America.
Together with Elanders’ global network we can expand even further
by offering Elanders’ customers ready-made solutions in North
America. We’ll also be able to offer our existing customers global
solutions, which are increasingly in demand.”
Bergen Logistics is expected to contribute positively to
earnings per share already in 2022 and Elanders expects to
consolidate Bergen into the Group in November 2021. The company is
valued at MUSD 155 on a cash and debt free basis and initially
Elanders will acquire 80 percent of the shares for MUSD 124. The
initial purchase price will affect cash flow negatively in the
fourth quarter 2021. Elanders also has a mandatory option to
purchase the remaining shares in 2024 for a purchase price based on
the company’s result in 2023. Acquisition costs are estimated to be
around MSEK 12-15 and will charge the fourth quarter result.
The acquisition is conditional on the fulfillment of customary
contractual terms. Closing is expected to take place within a
couple of weeks. The acquisition is financed through Elanders own
funds and an acquisition loan from the Group’s three main
banks.
For further questions, please contactMagnus
Nilsson, President and CEO, telephone: +46 31 750 07 50Andréas
Wikner, CFO, telephone: +46 31 750 07 50
This information is information that Elanders AB is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact persons set out above, at 07:30 CET on 11 November
2021.
- 2021-11-11 Elanders Press release - Elanders makes major
acquisition in North America and grows in E-Commerce
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