Mumbai: Aqua Logistics Ltd, a third-party logistics (3PL) services firm, on Monday said it has signed an agreement to acquire Chennai-based logistics and warehousing company Star Distribution Logistics Pvt Ltd for $2 million.
Initially, Aqua Logistics will acquire a 40% stake in the unlisted firm, and an additional 20% within two years, subject to terms and conditions and meeting of business performance targets. A 3PL services firm offers services such as transportation, warehousing and re-distribution of cargoes.
“This is a strategic acquisition rather than a plain vanila acquisition.
Star Distribution is strong in pharmaceutical and automotive with strong last mile delivering capabilities. This acquisition is very critical to us as it will enable as to offer an end-to-end logistics solutions in India,” M. S. Sayad, vice-chairman, Aqua Logistics, told Mint.
Star Distribution is headquartered in Chennai with offices in 20 cities, and delivers cargo to 300 towns nationwide.
After acquiring three logistics companies in Hong Kong in March, Aqua Logistics is planning to buy half a dozen similar companies in Thailand, Vietnam, Singapore and Indonesia for an estimated $70 million, Sayad added.