Aramex, a leading provider of express and logistics services, is eying several acquisitions in the next six months, Reuters said quoting Aramex chief executive Hussein Hachem. The Dubai-based operator last week reported a 7% increase in net profit of Dh74.6 million (US$20.3 million) in the three months to Sept. 30, compared with Dh69.5 million a year earlier.
Across all of its businesses Aramex delivered positive results, with e-commerce the highest performing segment, while international and domestic express, both maintained stable growth
The Reuters report noted that Aramex is increasingly looking at new acquisitions to raise its market share in the competitive logistics, e-commerce and transportation sector.
Securing a multi-million dollar credit line
To finance the acquisitions, the company has secured a US$150 million credit line from a consortium of banks and could easily increase that amount if needed, said Hachem.
“Looking to the end of 2015 and into next year, we will remain focused on capitalizing on the significant investment opportunities in e-commerce, as well as pursuing more acquisitions of companies that have suitable, scalable synergies with Aramex," Hachem added, declining to specify the target companies or their locations. The UAE’s e-commerce market alone is expected to reach US$10 billion by 2018.
In 2011, Aramex bought South African logistics and transportation company Berco Express and in 2014 it acquired Australian domestic courier company Mail Call Couriers.
Nol van Fenema