Aramex, the Dubai-based logistics company obtained all the necessary regulatory sanctions and finalized the acquisition
Aramex completes the purchase of Access USA Shipping LLC(MyUS), a global technology-driven platform that permits cross-border e-commerce. Aramex announced the purchase on Wednesday making it the company’s biggest acquisition to date. The Dubai-based logistics company obtained all the necessary regulatory sanctions and finalized the acquisition in an all-cash transaction of approximately USD $265 million.
MyUS will be incorporated fully into the company’s courier business segment, operating as a business unit. MyUS will preserve its brand name and will be corresponding to Aramex subscription-based last mile e-commerce solutions platform Shop & Ship. The company further stated that the acquisition will strengthen the firm’s transnational express business by increasing shipment volumes, expanding its coverage in new areas and destinations, and increasing and diversifying the company’s customer base.
MyUS is cross-border e-commerce enabling platform, that is technology driven and provides economic package-forwarding solutions. The Chief Executive Officer of MyUS, Ramesh Bulusu states that the company is ready for its new growth along with Aramex. “We are ready to take our products and solutions to new markets by leveraging on Aramex’s extensive global network, scale, knowledge, and expertise in markets exhibiting very attractive characteristics such as the MENA region, Australia and UK,” says Ramesh Bulusu.
In the year 2021, the company generated around USD $100 million and delivered more than 1 million packages to consumers who primarily shop from retailers based in China, the UK, and United States. The company has more than 175 thousand customers and mastered a customer-oriented business model that looks into the requirements of the customers especially the needs of the e-commerce shoppers over a span of 25 years with help of the most advanced technologies and leading expertise.
Ramesh Bulusu states that on working together with Aramex the firms will develop a joint business plan to develop operational synergies and earnings that will assist in the growth of the e-commerce business and provide the customers with the best solutions and services. He also added that the company’s aim under Aramex ownership is to grow into a multi-trillion-dollar global e-Commerce market. The company has over 250 employees mostly based in the US.
This transaction is expected to be value accretive for Aramex, providing strong growth in revenues, superior cash conversion, and attractive profitability
Othman Aljeda, Chief Executive Officer of Aramex, states that with the confirmation of the company’s largest strategic acquisition to date, Aramex has become a more competitive player in the interregional e-Commerce market. “Given how complementary MyUS’s business is to ours, we believe our wider stakeholder universe will realize the immediate and long-term positive benefits of this acquisition. Our shareholders will immediately see the impact on financial performance, and over the long term we can unlock further value through operational and cost synergies” says Othman Aljeda.
The firm’s customers are set to benefit from service excellence and additional network coverage in all aspects. The employees of the firm will benefit from shared knowledge, that develops their expertise in the cross-border express business, including adopting and learning MyUS’s leading exclusive software. Aljeda also adds that as the firms start the integration process, he would like to welcome MyUS’s employees and customers, looking forward to the growth of both companies.
During the transaction, Citi Group acted as a financial adviser, along with Cravath, Swaine & Moore acting as legal advisers to Aramex. King & Spalding acted as a legal adviser on behalf of all sellers, including an affiliate of Palm Beach Capital, a middle-market private equity investment firm based in West Palm Beach, Florida and UBS acted as a financial adviser