KEY POINTS:
Transport and logistics company Mainfreight today said it had bought United States company Target Logistics Inc for US$53.7 million ($77.2 million), or US$2.50 per share.
The US international freight forwarder and logistics provider is publicly listed on the US Stock Exchange.
Target's board has unanimously approved the takeover and because the majority of Target's voting stock has agreed the deal, there is no need for a stockholder vote.
Mainfreight's managing director Don Braid said the acquisition was Mainfreight's largest.
Target provides freight forwarding and logistics services in the US and internationally.
It has 3000 customers and a network of 34 offices in the US, including exclusive agency relationships in 20 cities, Mr Braid said.
It also operates through agents in 70 countries, including China and other countries in Southeast Asia.
Target's sales revenue in the June year is expected to be over US$180 million, and earnings "will be positive".
Mr Braid said the transaction would provide Mainfreight with a foundation for further growth in the US and international freight markets.
Pending the completion of closing conditions, the transaction is expected to be settled during November 2007.
Mainfreight shares were up 5 cents to $7.10 today. They have risen from $6.20 a year ago.
- NZPA
