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Tue 13 Dec 2011 06:03 PM

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Aramex says it paid $55.5m for South Africa's Berco

Dubai logistics company uses internal cash balance for acquisition of Berco Express

Aramex says it paid $55.5m for South Africa's Berco
Aramex CEO Fadi Ghandour

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.

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