Marine Link
Monday, September 26, 2016

NOL To Buy GATX Logistics For $210M

January 9, 2001

Shares of Singapore shipping and logistics firm Neptune Orient Lines (NPTOF) (NOL) rose 7.5 percent on Tuesday, buoyed by its deal to buy U.S.-based GATX Logistics for $210.5 million in cash. "They (NOL) have always said logistics is going to be a growth area for them. So, having made a significant acquisition, people tend to look at it positively because they are moving in the right direction," said Seah Hiang Hong, head of research at Kim Eng Securities. NOL said the acquisition would boost revenues for the group's unit APL Logistics -- the vehicle used to buy GATX -- by 70 percent or more than $300 million. GATX, owned by GATX Corp. (GMT) until last June, is the second largest warehouse-based contract logistic company in the United States with about 21 million sq ft of warehousing space. NOL said the completion of the deal was expected to take place during the first quarter of this year. An analyst at a local bank said profit figures for the U.S. company were not available, but the price paid appeared reasonable. "It is a fair price on the assumption that the company makes a net margin of about five to seven percent, which would equate it to an entry price-to-earnings multiple of about 18 times, which is fair for a logistics company," the analyst said. "We have a fair value of S$2.30 and have maintained a buy."


Maritime Reporter Magazine Cover Sep 2016 - Maritime & Ship Security

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News