J M Baxi Heavy Pvt Ltd has signed a definitive agreement to acquire Allcargo Logistics Limited's Project Forwarding & Logistics Business for Rs 98.64 crore, the company said in a statement.
It has also provided a binding offer to Lift and Shift India Private Limited (Lift and Shift), to acquire its heavy and over-dimension cargo logistics business, the statement added.
Lift and Shift has accepted the binding offer, which is subject to the execution of a definitive agreement for the business transfer between the parties. Both transactions are subject to completion, which is expected in the coming weeks.
On completion, both businesses will merge into J M Baxi Heavy Pvt. Ltd., a wholly owned subsidiary of J M Baxi Ports & Logistics Limited.
In December 2020, global private equity major Bain Capital had picked up a minority stake in a part of privately held maritime logistics major JM Baxi Group.
Mumbai-based logistics firm JM Baxi Group also plans to raise Rs 2,000-2,500 crore through an initial public offering.
Dhruv Kotak, Managing Director, J M Baxi Group said, “The acquisition of the two business divisions of Allcargo and Lift & Shift will add immense value, weave in synergies with the current line of business at J M Baxi Heavy and expand opportunities for the organization to be present in high growth categories. Through this, we will be able to cater to our customers across the infrastructure space in the Indian and African sub-continents. The acquisitions will further strengthen, JM Baxi’s strategy for long term growth and enable us to continue being an active participant in the Indian growth narrative.”
Lift & Shift brings with it, a specialization in engineered logistics services for the niche and growing category of super-heavy lifting, shifting and multimodal transportation.
It caters to sectors such as petrochemicals, hydrocarbon, fertilisers, renewable energy, power generation, civil construction, large scale manufacturing and prominently offshore oil & gas industry.
Together, J M Baxi Heavy and Lift & Shift will have the largest fleet of speciality equipment for over-dimensional & heavy cargo logistics like Self Propelled Modular Trailers (SPMT), barges and lifting equipment. This will enable JM Baxi Heavy to reach a wider customer base, improve its service proposition and create synergies in efficiency building, the company said.
Promoted by Krishna Kotak and family, JM Baxi Group was founded in 1916 is one of the leading maritime and logistics players in the country having integrated logistics services and transportation conglomerates, with a focus on port-based logistics.
Allcargo's Project Forwarding and Logistics business will add to J M Baxi Heavy’s existing network with enhanced geographical presence in the Indian sub-continent and Africa, as well as clientele in the Project Forwarding and Logistics sector. Additionally, backed by its excellence in customised lifting and transportation solutions, Allcargo's expertise in project forwarding and long-haul transportation of heavy/over-dimension cargo will further bolster JM Baxi Heavy’s existing strengths in this segment.
Adarsh Hegde, Joint Managing Director, Allcargo Logistics, said, “At Allcargo, this exit is aligned with our strategy to focus on Allcargo Group’s core business.