Adani Logistics to acquire agri-logistics arm from AEL by March 2019
After the acquisition, combined business would also benefit from leveraging significant opportunity for handling multiple commodities and transportation.
The Adani Logistics Limited (“ALL”), a 100 per cent subsidiary of Adani Ports and SEZ Limited (“APSEZ”), today announced its intent to acquire Adani Agri Logistics Limited (“AALL”) from Adani Enterprises Limited (AEL). The acquisition will be an all-cash deal and is expected to be completed by March 2019.
Elaborating on the deal Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said told Zee Business Online in a written statement, “We are excited to share that today we have announced the acquisition of Adani Agri Logistics Limited. AALL is the largest agri products logistics player with long term contracts and strong margins. This Acquisition of AALL brings us one step closer towards our vision to be the leader in providing integrated logistics services in India and focus on developing hinterland logistics. It enables us to expand our total addressable market, enhance our network and create a value chain to handle all types of cargo in India.”
See Zee Business video below:
— Zee Business (@ZeeBusiness) February 25, 2019
AALL has 1.58 MMT fully contracted capacity with modern agri infrastructure of 7 trains, 28 storage/handling infrastructure facilities across 10 States. AALL has long term (20-30 year) guaranteed offtake contracts on use or pays basis with 70%+ EBITDA margins. AALL targets to double infrastructure capacity in the next 3 years and tap the new 12.5 MMT infrastructure market as well as opportunities such as conventional storage conversion, among others.
Combined Business would also benefit from leveraging significant opportunity for handling multiple commodities and transportation.