Multilog makes one other acquisition and anticipates the billion mark
Company closed the purchase of Apología in order to diversify its portfolio of services and DCs
Five months after buying Martins & Medeiros, Multilog has just completed the acquisition of Apo Logística, which could add another 15% to revenue next year. The logistics operator from Santa Catarina has also managed to maintain its organic expansion and the alignment of the two strategies made Multilog anticipate its revenue target by three years.
The company projected to reach BRL 1 billion in revenues in three years, but it will close 2022 at this level. With the incorporation of the two acquisitions of the year, it should jump to BRL 1.4 billion in 2023.
While the Martins & Medeiros transaction added operations in the Northeast region, the acquisition of Apoo will help the company diversify its service portfolio with non-customs distribution centers — something the company has been seeking since 2017.
Multilog will absorb six operational units from Apoio that are spread across São Paulo and Santa Catarina and comprise 200,000 m² of total area, of which 180,000 m² are covered, increasing Multilog’s capacity by more than 100,000 pallet positions.
“10 years ago, Multilog was 100% dependent on bonded areas and we are looking for a complement of services with acquisitions, as is the case with Apoo”, explains Djalma Vilela, CEO of Multilog. “I see that the logistics sector in Brazil is still maturing. We have a very dispersed market and great growth potential in our country, which is continental.”
Multilog postponed a plan to issue debentures until next year, initially worth R$ 500 million, given the adjustment in the interest curve that made the debt more expensive. The company had no urgency in funding, as it manages to pay for the two purchases this year with cash generation and bank financing.
For the next year, the company already has two acquisitions in mind, and then access to the capital market may come in handy – including offering shares. Multilog is working with the possibility of an IPO next year, which will depend on the market moment.
Of the M&A transactions under discussion, one is already in advanced due diligence and should be finalized between February and April, and the other should remain for the second half. The following year, in 2024, the idea is to reach at least one more Mercosur country.
Source: Pipeline Valor