Aramex looking forward to acquire 3 more companies
Aramex is looking to acquire up to three companies this year in order to expand its business. Chief executive of the company, Hussein Hachem recently announced it. Aramex is Dubai based logistics and Transportation Company.
Hachem told media that the company is already in advanced talks with concerned authorities to buy companies in Africa, Asia and the US. Aramex expects to raise $150 million (Dh550 million) from a few local and international banks in UAE in 2015. The company also plans to spend between $100 million and $120 million of that amount to fund these acquisitions. The rest amount will be spent on building a warehouse in Dubai Logistics City.
During the press conference held in Dubai, where Hachem revealed about his wish to execute the plan of acquisition, he told the audience that the company will be signing the documents needed towards that as soon as possible.
With debt equity ratio around 8%, the company will still be able to make use of approx $300-$400 million being lent by interested banks.
Last year Aramex acquired and expanded its operations in Africa and Australia. Aramex gives tough competition to companies, which are renowned for their transportation services like FedEx and DHL.
Aramex spent $16.5 million to buy the master franchise for South Africa-based retailer PostNet last year. It offers services like printing and courier from OneLogix Group. In 2011, the company also bought Berco Express, which is a South African logistics and transportation company. In the beginning of 2014, Aramex acquired Australian courier company Mail Call Couriers for $33 million.
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