Santova Limited Announces The Acquisition Of A-Link Freight Inc
Santova Limited Announces The Acquisition Of A-Link Freight Inc. The Board of Santova is pleased to announce that subject to the terms set out below, Santova has concluded a purchase and sale agreement to acquire 100% of the share capital or assets of A-Link Freight, Inc. from Universal Shipping, Inc. for an amount of USD 2 350 000 with effect 21 September 2022.
A-Link is based in Los Angeles (“L.A.”), California, and has been operating for over 20 years providing air freight services to and from the United States of America (“USA”) with specific focus on exports from Los Angeles airport (“LAX”). Their agreements with major international carriers allow A-Link to provide competitive rates with a reliable service. A-Link focuses on daily consolidations from L.A. to the Far East and other key hubs across the globe as well as door-to-door services. They operate in a niche market supporting ecommerce which has resulted in A-Link becoming a reputable service provider to the industry. A-Link also offers warehousing near LAX with many customers taking advantage of their cross-dock services.
The USA has been a focus area for Santova for numerous years with a number of existing clients importing from and exporting to the region. Due to the premium the market attributes to logistics businesses in the USA, Santova has been cautious in its entry into the region and patient in pursuing opportunities. A-Link is strategically located in Inglewood, California, which is in close proximity to LAX. In 2021, LAX ranked as the fifth busiest airport globally having recorded 506,769 aircraft movements to service over 48 million passengers and 3 million tons of freight.
Los Angeles also offers a complex multimodal transportation infrastructure, which serves as a regional, national and international hub for the movement of freight by air, sea, road and rail. It further hosts the United States’ largest port complex, an extensive freight and passenger rail infrastructure, including light rail lines and an extensive freeway and road system. The ports of Los Angeles and Long Beach, account for approximately 40% of all shipping containers entering the USA. The acquisition will be funded through Santova’s cash reserves and the R75 million medium term acquisition loan facility, which was approved in 2018 by the Group’s primary transactional bankers for general acquisition purposes.
