Baltrans plans EU shopping spree
Baltrans Holdings, a Hong Kong-based freight forwarder, aims to double sales over the next two to three years as it seeks more acquisitions in Europe.
Following the recent acquisition of Swedish freight forwarding firm Gothenburg Shipping Logistics, Baltrans chief executive Henrik von Sydow said the company would be looking into the markets in France, Italy and Spain.
Baltrans has five offices in Britain and six in Germany under the joint-venture company BNG Logistics.
Baltrans chairman Anthony Lau said that a 100 per cent increase in sales was 'an achievable target' given the acquisitions that the company has made.
The firm bought Logistics LLC in Dubai and Clover Cargo in South Africa over the past 12 months.
Baltrans turnover rose to $3.7 billion for the year ended July 2005 from $3.3 billion while profit more than doubled to $111 million from $53 million.
Its profit for the half year ended January 2006 rose 50 per cent to $71 million from $47 million a year earlier as turnover rose to $2.05 billion from $1.84 billion.
Its new purchase, Gothenburg Shipping, will probably have a net profit of $12 million this year, about three times more than its $3.8 million profit last year, Mr Lau said.
Gothenburg Shipping was valued at 12 times earnings, and Baltrans agreed to pay up to $165 million for the acquisition, dependent upon the Swedish firm's profit in this fiscal year.
Baltrans was in talks with another shareholder of BNG, hoping to take the 50 per cent stake it does not own, said Mr Lau. BNG's profit is estimated to be Euro500,000 ($4.8 million) this year.
Baltrans shares gained 2.63 per cent yesterday, closing at $5.85, a year's gain of 42.7 per cent.
