EAC Moving & Relocation Services, operating under the brands Santa Fe and WridgWays, has entered into an agreement to acquire Europe’s leading moving and relocation services company, Interdean International Relocation Group. EAC Moving & Relocation Services will take over 100 per cent of Interdean’s share capital at a total price of EUR 65m corresponding to DKK 485m on a cash and debt free basis.
The transaction is expected to be completed by end of July 2011 and the daily management team of Interdean will continue after the merger.
The acquisition doubles EAC Moving & Relocation Services’ revenue and significantly strengthens its position as a leading provider of moving, relocation and records management services in Asia, Australia, the Middle East and now Europe.
The expanded geographical platform offers considerable competitive advantages by providing one-stop solutions to international corporate customers. The strategic fit and major growth synergies available in the merger will be an important step forward in turning EAC’s two businesses – Santa Fe and WridgWays – into independent, listed companies.
Headquartered in the UK, Interdean was established in 1959. Interdean operates from 48 relocation service centres and employs 1,200 service staff in 35 countries across Europe (including Russia) and Central Asia.
In 2010, Interdean produced total revenue of EUR 145m (DKK 1,081m) and an EBITDA of around EUR 7.0m (DKK 52m). The business is developing positively and achieved double-digit growth compared to the 2009 accounts in an otherwise recessionary environment.
About Santa Fe & WridgWays
The combined business of Santa Fe and WridgWays holds a market-leading position in Asia and Australia with 72 offices in 15 countries with more than 1,950 employees, and it handles in excess of 64,000 moves annually.
The business operates with strong focus on customers, quality and results and provides a broad range of value-added service offerings within moving, relocation and records management to corporate and individual customers in Asia, Australia and the Middle East – and to the rest of the world through a global network of partners.
Joining forces with Interdean provides EAC Moving & Relocation Services with an important entry to Europe and Central Asia where the group will have a market-leading position complementary to its solid footprint in the Asia, Australia and the Middle East.
In addition to doubling its revenue and significantly expanding the geographic footprint, the acquisition of Interdean offers EAC Moving & Relocation Services several valuable competitive advantages: A very large proportion of Interdean’s business volume is generated from direct accounts among corporate headquarters across Europe requesting one-stop solutions irrespective of whether the service is needed in Europe, in Asia, Australia or the Middle East regions – or between these regions.
This acquisition means that EAC Moving and Relocation Services will be able offer fully controlled service deliveries for its customers in an expanded geographical scope – an improvement which will also benefit the business’ existing customers and partners. Moreover, the enhanced business platform significantly strengthens its competitive position to obtain new multinational customers – an advantage which is already apparent within the recently combined Santa Fe/WridgWays organisation. In addition, significant growth synergies can be achieved by leveraging Santa Fe’s sophisticated service solutions and concepts across Interdean’s 48 offices.
Overall, the acquisition offers a unique strategic platform for continued growth and value creation with further attractive expansion opportunities in the Middle East and in those parts of Europe and Asia-Pacific where the company is not currently present. However, there are no plans to expand into the USA or Canada as it is management’s view that Santa Fe is better represented in that region through close partnerships with leading players.
EAC’s strategy towards 2016
The acquisition is an important step in EAC’s strategy of continued focus on long-term value creation by strengthening the market value of the Group with the overriding aim in the coming years to develop both EAC Moving & Relocation Services and EAC Foods into strong and independent businesses, each with a size and organisation sufficient to become independent, listed companies that will be attractive to international investors.
EAC’s outlook for 2011
Upon completion of the transaction EAC will announce an updated outlook for 2011. In connection with the Annual General Meeting in March 2011, EAC announced a minor upwards adjustment of revenue for the group to around DKK 6.0bn and an EBITDA margin of around 8 per cent.
“We are very pleased about the agreement to acquire Interdean which is a perfect strategic fit for Santa Fe. From years of close collaboration we know Interdean as a professional organisation with whom we share a sense of quality and dedication to outstanding customer service. As the European market leader, Interdean has a large portfolio of blue-chip organisations as direct customers which will significantly strengthen EAC Moving & Relocation Services’ position as a leading provider of moving, relocation and records management services on a global scale outside of North America,” says Niels Henrik Jensen, EAC’s President & CEO.
EAC’s website: http://www.eac.dk/.