TDG acquires IWT Worldwide Logistics for £11.7 m

LONDON (AFX) – TDG PLC, the supply chain solutions company, said it has
bought privately owned Irish logistics group IWT Worldwide Logistics Ltd for
11.7 mln stg.
Separately in its results for the six months ended June 30, the company
posted a pretax profit of 9.4 mln stg — unchanged from last year — beating
analysts’ expectations of a pretax of 8.7 mln.
The acquisition of IWT, which provides contract logistics services within
Ireland and the UK, and international forwarding services, makes TDG one of the
top three logistics service providers in Ireland, it said.
The deal comprises an initial cash payment of 6.9 mln stg with deferred
payments of 2.5 mln and 2.3 mln in 2002 and 2003 respectively and provides TDG
with, “the scale and credibility necessary to exploit the growth opportunities
in the Irish market,” while further developing its relationships with Diageo PLC
and Nestle AG, it said.
It also extends TDG’s capabilities in international forwarding services, it
added.
Last year IWT — whose customers also include Marks & Spencer PLC, Atlantic
Industries, and ADM Londis — made an operating profit of 1.2 mln stg on
turnover of 44 mln. The value of the net assets acquired is 1.3 mln, TDG said,
adding IWT has no debt.
TDG chief executive David Garman said the acquisition, “significantly
strengthens our position in Ireland in our chosen market sectors, and develops
our skills and capabilities in multi-country operations.”
In its results, the company said sales rose 17 pct to 250.9 mln from 213.7
mln in the same period a year earlier.
TDG said it is pleased with the results given the deteriorating economic
background, adding its new business wins are on target and the pipeline is
strong.
However, it warned that trading conditions in the UK and Continental Europe
remain challenging, adding the outcome for full year 2001 will depend on
economic conditions in the second half.
Garman said, “at this stage we expect our results for the year to show
satisfactory progress.
“We have continued to secure new business at a similar rate to last year,
and we have made good progress in developing our strategic alliances.”
Total operating profit was 12.2 mln, compared with 12.6 mln the last time.
Interim dividend was 5.25 pence, up 5 pct from 5 pence last year.

IWT provides contract logistics services within Ireland and the UK, and
international forwarding services. Over 70% of the business is contract
backed. IWT has a substantial presence in the FMCG sector with customers
such as Diageo, Marks & Spencer, Atlantic Industries, Nestle and ADM Londis.
Other major customers include Aventis, Elementis and Pilkington. The
business operates from 11 sites with 7 in Ireland, 3 in the UK and 1 in
Holland.