NTG Nordic Transport Group Expands with ITC Logistics Acquisition

NTG Nordic Transport Group Acquires ITC Logistics

NTG Nordic Transport Group has made an impactful move in the logistics sector by signing an agreement to acquire ITC Logistics, a well-established player in Germany. This acquisition is set to enhance NTG's operational footprint and service capabilities across Continental Europe.

Understanding ITC Logistics

ITC Logistics has built a strong reputation for delivering tailored road and logistics solutions. This company caters to a diverse clientele, especially in the telecommunications industry, providing services that include the purchase, sale, storage, and transportation of cables. With a workforce close to 210 employees across five strategic locations in Western Germany, ITC offers robust logistics solutions that align well with NTG's operational ethos.

Financial Overview of ITC Logistics

In the financial year ending 2023, ITC reported significant revenue figures, reaching EUR 80.4 million, alongside an EBIT of EUR 11.4 million. This performance puts ITC in a solid position to contribute approximately EUR 10.8 million to NTG’s consolidated EBIT over the next year, showcasing the potential for enhanced profitability through this integration.

Transaction Details

The deal encompasses several key elements:

• NTG will acquire 100% of the shares in ITC Logistics based in Koblenz and Schwieberdingen, along with a 70% stake in the affiliate company, Haarhaus – Logistics GmbH.
• The transaction has been valued at EUR 56.9 million, which is assessed on a cash and debt-free basis.
• In addition to the upfront payment, there is a potential earn-out payment of up to EUR 3.6 million, subject to achieving specified commercial performance criteria by 2026.
• NTG plans to pay 20% of the purchase price in its shares, financing the remaining 80% through cash and credit facilities.
• Upon completion, the transaction is anticipated to generate synergies of approximately EUR 2.3 million annually, further solidifying NTG’s market position.

Strategic Significance

This acquisition represents a pivotal advancement for NTG as it enhances the company's scale and effectiveness within Germany's logistics market. By integrating ITC into its operations, NTG aims to optimize various aspects of its service delivery, leveraging ITC’s established network and infrastructure. The anticipated synergies and operational efficiencies will enable NTG to better serve its existing clients while attracting new business opportunities.

Executive Insights

Jesper Petersen, CEO of Road & Logistics at NTG, expressed excitement over the acquisition, emphasizing the strategic fit and alignment with NTG’s existing operations in Germany. He pointed out that ITC's broad network and strong operational capabilities will play a crucial role in driving further growth.

Additionally, Wolf-Peter Korth, owner and member of the Board of Directors at ITC, echoed this sentiment, highlighting the importance of stability and continuity for ITC’s employees and customers. Korth believes that joining forces with NTG will greatly enhance ITC's service offerings and improve customer value.

About NTG

NTG is recognized globally as a leading freight forwarding company, specializing in customized transport solutions across various modes, including road, rail, air, and ocean. With almost 2,000 employees operating in over 20 countries, NTG is equipped to handle diverse logistics demands on a global scale.

Conclusion

The acquisition of ITC Logistics marks a significant milestone for NTG, strengthening its operational framework in Germany and setting the stage for future growth within the European logistics market. As NTG integrates ITC into its network, the company is well-positioned to leverage both organizations' strengths, offering enhanced services to clients across different industries.

Frequently Asked Questions

What motivated NTG to acquire ITC Logistics?

The acquisition allows NTG to enhance its logistics capabilities in Germany, capitalize on synergies, and promote growth in the European market.

What services does ITC Logistics provide?

ITC specializes in bespoke road and logistics solutions, including groupage, FTL, LTL, and additional value-added services for key clients.

What are the financial implications of the acquisition for NTG?

ITC is expected to contribute approximately EUR 10.8 million to NTG’s consolidated EBIT over the next 12 months, boosting overall profitability.

When is the acquisition expected to close?

The transaction is anticipated to close by the end of 2024, pending regulatory approvals.

How many employees does ITC have?

ITC employs around 210 people across its five locations in Western Germany.

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