Exel acquires FX Coughlin

Exel, the logistics group, is to acquire FX Coughlin of the US, which supplies logistics and freight forwarding services to the automotive industry for up to Dollars 331m (Pounds 227m).

Exel, which last week warned of short-term uncertainties over its growth, said it would pay an initial Dollars 140m for Coughlin, and assume Dollars 21m of debt. It would make deferred payments of Dollars 40m linked to customer retention over a three-year period, and potential payments of up to Dollars 130m if Coughlin’s performance exceeded current profitability.

Coughlin made underlying profit of Dollars 20m in the year to December 31 2000, and had net tangible assets of Dollars 9m.