Adani Ports & SEZ arm buys InLogistics for Rs 331.5 crore

Mumbai: Adani Logistics, a wholly-owned arm of Adani Ports & SEZ, Thursday signed an agreement to acquire 100 percent in Innovative B2B Logistics Solutions (InLogistics), a rail-based logistic firm controlled by private equity firm True North for an enterprise value of Rs 331.5 crore.

The Adanis will pay an upfront amount of Rs 43.2 crore in an all-cash deal while the rest will be paid over an unspecified period of time, the Adani Logistics said in a late evening filing to the exchanges. The company said the transaction implies an equity value of Rs 43.2 crore for 100 percent of InLogistics shares and 10 times multiple of its expected pre-tax earnings for FY19, which takes the enterprise valuation to Rs 33.5 crore.

"The transaction will be an all cash deal and is expected to be completed by the first quarter of FY20," the company said in a statement adding post-transaction Adani Logistics will become the largest private sector rail and logistics operator in the country.

"It enables us to expand its total addressable market, enhance network coverage and create a value chain to handle dry cargo segment," the statement said. Founded in 2006, InLogistics provides integrated logistics services for domestic cargo movement and serves the Eastern and Northern hinterland markets and lists Tata Steel, Tata Sponge Iron, JSW Cement and retail marble traders as its key clients.

InLogistics will add 14 container rakes, one logistics park spread across 38 acres and 3,566 containers to Adani Logistics which currently operates three logistics parks, two Exim yards and one container yard with a capacity to handle 5,00,000 TEU per year.