Wiseway Group Limited (ASX: WWG), one of Australia’s leading integrated freight and logistics operators, has reached agreement to acquire KWT International Inc., a US-based logistics company with locations in Los Angeles and New York.
SYDNEY: Wiseway Group Limited (ASX: WWG), one of Australia’s leading integrated freight and logistics operators, has reached agreement to acquire KWT International Inc., a US-based logistics company with locations in Los Angeles and New York.
This strategic acquisition marks a significant milestone in Wiseway’s ongoing efforts to expand its capabilities and footprint in the United States.
KWT International was established in 2016 in the state of California, USA. KWT is exports/imports freight forwarding, 3PL warehouse, inbound customs clearance, and last mile delivery business.
The KWT team has 10 staff, operating 2 warehouses located in Los Angeles and New York, with a revenue of USD11 million in last USA financial year and has a track record of delivering profits over the last three years.
The completion of the proposed acquisition is expected to be completed by August 2024 and the Company confirms there are no material conditions to be satisfied to complete the acquisition.
Wiseway Logistics INC. (Wiseway USA), the wholly owned subsidiary of Wiseway Logistics Australia”), will issue 49% of new shares to KWT’s current shareholders, and inject USD200,000 cash to the joint venture.
The cash consideration component will be funded from existing reserves.
Wiseway Group will still maintain majority shareholding (51%)
of Wiseway USA, who will be wholly owning KWT.
The acquisition of KWT will provide Wiseway with established
operational bases in two of the largest and most important logistics hubs in the United States – Los Angeles and New York.
This will significantly enhance Wiseway’s ability to serve its clients with comprehensive logistics solutions across the US.
The acquisition will also bring the current experienced management team of KWT to Wiseway USA
Mr Roger Tong, the Group’s Chief Executive Officer, commented: “The acquisition of KWT International Inc. aligns with Wiseway’s strategic objective of expanding its global reach and service offerings.
With KWT’s strong presence in the US market and its established customer base, Wiseway will be well-positioned to leverage synergies and enhance its operational capabilities.
This acquisition is expected to
drive significant value for shareholders and provide a robust platform for future growth.”