Allcargo Logistics soars 13% on buyout of US co Econocaribe

Moneycontrol Bureau

Shares of Allcargo Logistics surged 13 percent in intraday trade Friday after the logistics services provider announced acquisition of 100 percent interest in US-based Econocaribe Consolidators.

It acquired the US company through its wholly owned subsidiary, Ecu Line. The deal size of the transaction is USD 50 million.

Ecu Line has been working in the USA, engaging Econocaribe as its agent. "This acquisition now enables Ecu Line to complete its service offerings, both in terms of global capabilities and coverage," the company said in its filing.

Econocaribe, which is the third largest LCL consolidator in the US, has 9 offices in the US and 22 receiving terminals throughout the US and Canada, as well as partners across the world.

Meanwhile, Allcargo's net profit fell to Rs 19.74 crore in the quarter ended June 2013 from 34.96 crore in a year ago period. Revenues too declined to Rs 234.13 crore from Rs 278.56 crore during the same period.

At 14:30 hours IST, the stock rallied 9.64 percent to Rs 98.40 amid hefty volumes on the Bombay Stock Exchange.

(Posted by Sunil Shankar Matkar)