Dubai logistics company uses internal cash balance for acquisition of Berco Express
Dubai's Aramex paid $55.5m from its internal cash balance for the acquisition of South African logistics firm Berco Express, the company said in a statement on Tuesday.
The UAE-based logistics company said on Sunday that it had completed the acquisition of Berco and would look to further expand across Southern Africa by opening additional offices and warehouses.
" ... the investment cost in the acquisition reached $55.5m and it was completely financed through Aramex' existing cash balance," the company said in a statement to the Dubai bourse.
The acquisition is part of the company's strategy to expand internationally and follows a recent joint venture with SinoAir in China, and the acquisition of OneWorld Courier and In-Time Couriers in Kenya in the first quarter.
Berco Express operates 15 branches throughout South Africa and employs more than 700 people.
Aramex shares ended 1.6 percent lower on Tuesday.