Autologic buys Axial
AutoLogic Holdings, the UK car distribution company, on Tuesday announced it would spend about £122m ($175m) on two acquisitions designed to bolster its international presence.
The company will buy Tibbett & Britten’s Axial automotive distribution business for £74.5m.
Under the terms of the deal, Tibbett and Britten will get £59.5m in cash and about 3m shares, giving the company a 7.3 per cent stake in AutoLogic.
AutoLogic also announced on Tuesday it had purchased a controlling stake in Compagnie d’Affretement et de Transport (Cat), Renault’s transport and logistics business, for E76.3m ($68.3m).
AutoLogic will acquire a 40 per cent holding in Cat. TNT Post Group, the Dutch parcels and distribution company, and Wallenius Lines, a Swedish shipping group specialising in transporting cars, will take 20 per cent each, while Renault will retain a 20 per cent stake.
The total value of the transaction is E467.4m, about E430m of which is to be paid in cash. Renault will receive E37.4m worth of shares in the new consortium being formed by AutoLogic, TNT and Wallenius.
AutoLogic will fund the purchase through a one-for-two rights issue, expected to raise £51m.
The Cat and Axial deals will help AutoLogic expand throughout the Continent and South America. It is currently active in the UK, Holland Belgium and France. John Merry, chief executive, said the acquisitions would allow AutoLogic to seize opportunities created by the rapidly consolidating automobile industry.
“They (the car companies) want to deal with larger suppliers who have a more international reach,” said Mr Merry.
Cat has 76 car handling centres in Europe and moves cars for companies including DaimlerChrysler, Toyota, Volvo and Avis. Axial is a leading European provider of finished vehicle distribution, operating from 50 sites around the UK as well as France, Spain and Portugal.
AutoLogic shares were 1 per cent higher at 737-1/2p in early London trading.
News of the acquisitions came as AutoLogic announced results for the year ended December 31.
Pre-tax profit rose 14 per cent to £13.5m from £11.8m on turnover of £198.9m against £183.8m in 1999. Earnings per share were 34.35p compared with 28.91p. The final dividend of 6.75p makes a yearly total of 10p, up from 9.15p last time.
