Ed Richardson
CAPE TOWN-based Laser Logistics has bought the Western Cape-based express road freight company, Goeie Hoop Vervoer, for R16,8 million.
Laser's chief executive, Michael Fuller, says the acquisition is of strategic importance as it completes Laser's national express delivery network which is currently serviced by its subsidiary, Time Freight.
Time Freight is strong in Gauteng, Mpumalanga and KwaZulu Natal and will now benefit from the national representation. By integrating the business of Goeie Hoop with that of Time Freight, we now have a link-up between the major routes of Johannesburg, Cape Town and Durban, he says.
Fuller says the transaction will be settled by an initial cash payment of R6,9 million based on a warranted net asset value. Two further payments of R4,95 million will be made over the next two years based on profit warranties of R4 million and R4,4 million respectively.
Laser's logistics business specialises in providing supply chain solutions in the time-sensitive business-to-business market. Laser has developed a strong working relationship with Goeie Hoop Vervoer over the past four years as we have used their services in areas where Laser has not been operating, says Fuller.
The acquisition will enable the clients of both Time Freight and Goeie Hoop Vervoer to benefit from a national express network. Laser will also have access to the Goeie Hoop client base which has been built up over several years.
Fuller says Laser and Goeie Hoop had similar customer profiles, with both focusing on the high margin SMME market.
The Laser Group has undergone an extensive restructuring programme over the past year aimed at repositioning it as a new economy company with Internet and e-commerce enabled services. The Group consists of two focused operating divisions - Laser Logistics, which provides a time-sensitive business-to-business delivery capacity to meet the growing demand for e-commerce fulfilment, and Laser Human Resourcing which focuses on human resource outsourcing services. Laser previously operated as a removals company but disposed of this business in 1999.
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