Aramex to snap up Beirut’s Libanpost

ARAMEX International has begun a series of acquisitions by moving to purchase Lebanese postal company, Libanpost. Arabian Business understands that the deal will be concluded next week.

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By  Rhys Jones Published  May 8, 2005

ARAMEX International has begun a series of acquisitions by moving to purchase Lebanese postal company, Libanpost. Arabian Business understands that the deal will be concluded next week. The deal is the first of many acquisitions planned by the transport solutions provider. Last week the company announced that it had allocated US$300 million to buy well-run companies during the next two to three years. “We started talks with Libanpost a while back and discussions are now ongoing,” said Fadi Ghandour, CEO, Aramex. “I can’t comment on any specifics but we have been in talks with Libanpost and we will be able to say more this week,” he added. Aramex, which recently announced an 84% increase in first quarter net profit to US$4.1 million, has already acquired UAE-based Infofort, the documents storage business. The company is currently is in the process of completing the acquisition of SMS, a leading Pakistani distribution business and is also aiming at region-wide and international expansion. “We are currently working on acquiring a large company with operations in the United States and United Kingdom,” explained Ghandour. “Other countries we are seriously looking at include Lebanon, India, China and Egypt,” he added. The company is also investing in a capacity expansion in Jebel Ali, and in establishing a land freight terminal in Al Aweer. Arab International Logistics (AIL), which recently concluded an initial public offering of US$150 million in the UAE, is in talks to buy out Aramex, in which Abraaj Capital holds a 70% stake. Aramex’s revenues increased 22% to US$50.7 million for the quarter ending March 31. Operating income increased 74% to US$4.8 million. “This is one of the strongest quarters we have ever reported, and the results confirm our strategic advantages in the market,” said Ghandour, adding that future acquisitions would help the company maintain its 20% to 25% annual growth.

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