Allcargo Logistics Ltd, through its step-down wholly-owned subsidiary Ecuhold NV, has acquired US-based logistics firm Econocaribe Consolidators for an undisclosed amount, as per a stock market disclosure.
Established in 1968, Econocaribe Consolidators is a non-vessel operating common carrier (NVOCC) with offices throughout the US. The firm specialises in freight consolidation with receiving terminals. It offers weekly export sailings to over 125 destinations throughout Latin America, the Caribbean, Europe, Mediterranean, Middle East, Africa and Asia.
It has nine offices in the US and imparts LCL (less than container load)/FCL (full container load) transportation services from around the world in the US and Puerto Rico.
For Allcargo, this is the third key overseas acquisition. In June 2006, Allcargo acquired Belgian logistics firm ECU Hold NV for $15.67 million. This brought in international operations of Ecu Line under its fold.
After that in October 2010, the firm acquired business rights and controlling stake in Hong Kong-based companies engaged in NVOCC business in China and other parts of eastern regions for $22 million.
The latest transaction will enable Ecu Line to complete its service offerings in terms of global capabilities and coverage. This will also increase Ecu Line's foothold in the US market which will facilitate growth into and out of US market and the rest of the world.
Mumbai-based logistics firm Allcargo, founded in 1993, operates container freight stations and inland container depots, and provides multimodal transport solutions. Its services include ocean, air and land logistics, as well as LCL consolidation, FCL forwarding, multi-city consolidation, container freight logistics, warehousing, project cargo movement and cargo consolidation.
Blackstone holds around 14.4 per cent stake in the firm. The PE firm had invested in the company in early 2008, when the stock market had just started retracing its steps after the bull market peaked out. Its investments are underwater and the investor is sitting on almost 50 per cent unrealised loss, as per VCCircle estimates.
The firm is also backed by New Vernon Private Equity Ltd.
(Edited by Joby Puthuparampil Johnson)
